Indian Companies Gear Up for Record-Breaking Spending Spree: S&P Predicts $850 Billion By 2030
By Ankur Chandra | Updated at: Jun 11, 2025 07:23 PM IST
Mumbai, 11 June 2025: India’s corporate sector is gearing up for a dramatic surge in capital expenditure (capex), with investments projected to nearly double in the next five years. According to a new analysis by S&P Global Ratings, total spending could hit between $800–850 billion by 2030, driven by strong economic momentum, lean balance sheets, and favourable policy support.
Despite this bold expansion, S&P anticipates that most companies will maintain sound credit profiles, thanks to robust financial positions and strong cash generation capabilities.
Corporate Confidence: Growth Without Debt Overload
The report, titled “Indian Inc.’s Spending Spree Will Likely Pay Off,” outlines how well-prepared Indian businesses are to undertake this next phase of growth.
“With some of the strongest balance sheets seen in years, and supportive macroeconomic forces at play, Indian companies are in a prime position to scale up efficiently,” stated Neel Gopalakrishnan, Credit Analyst at S&P Global Ratings.
“As long as firms avoid execution pitfalls or adverse macroeconomic shocks, this investment wave should lead to business expansion without significantly increasing financial leverage,” he added.
Capex Overview: 2025–2030 vs. 2020–2025
| Metric | 2020–2025 Estimate | 2025–2030 Projection |
|---|---|---|
| Total Corporate Capex | ~$400 billion | $800–850 billion |
| Balance Sheet Leverage | Declining | Remains Stable |
| Operating Cash Flow Growth | Up to 2x | Sustained Growth |
Sectoral Focus: Investment Drivers and Projections
Significant capex inflows are expected in sectors like power (especially renewables) and aviation infrastructure, with the potential for 2x–3x increase in investments. Meanwhile, traditional sectors such as steel, cement, telecom, oil & gas, and automobiles are also projected to see a healthy 30–40% rise in capital spending.
| Sector | Growth Driver | Capex Outlook |
|---|---|---|
| Power (Renewables) | Energy transition, demand growth | Highest capex needs |
| Airports | Air traffic expansion | 2x–3x current levels |
| Steel & Cement | Urbanisation, infra demand | 30–40% capex growth |
| Telecom & Autos | Tech upgrade, mobility demand | Moderate acceleration |
Financing Plans and Credit Strength
- Primary capex funding will come from internal cash flows, with the power sector as a likely exception due to its elevated funding requirements.
- Indian corporates have benefited from deleveraging over the past 3–4 years, providing ample financial headroom.
- Earnings and operating cash flows have seen a 60%–100% increase compared to five years ago.
- S&P does not foresee major credit profile weakening if current conditions continue.
However, Gopalakrishnan cautioned, “Power companies will face the highest capital burden, making them vulnerable to execution and funding risks.”
External Tailwinds and Emerging Capex Segments
India’s growing role in global supply chain diversification is another key catalyst.
- Industries such as electronics, semiconductors, medical equipment, and auto components are expected to benefit from this trend.
- While their contribution to total capex may be gradual and modest, their long-term growth potential remains strong.
Study Methodology
This forecast is derived from a comprehensive analysis of capital allocation trends among India’s top 100 listed firms by market capitalisation, select large private corporations, and proprietary insights from Crisil Intelligence, a division of S&P Global Ratings.
Contact Information
Analyst Contacts:
Neel Gopalakrishnan, Melbourne | +61 3 9631 2143 | neel.gopalakrishnan@spglobal.com
Anshuman Bharati, Singapore | +65 6216 1000 | anshuman.bharati@spglobal.com
Media Contacts:
Richard J Noonan, Melbourne | +61 3 9631 2152 | richard.noonan@spglobal.com
Ning Ma, Hong Kong | (852) 2912-3029 | ning.ma@spglobal.com
About S&P Global Ratings
S&P Global Ratings is a premier credit rating agency that provides independent and transparent financial assessments. Its credit opinions support global markets in evaluating risks and making informed investment decisions
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