The share of public sector undertakings is Rs 25 and that of multinational companies a paltry Rs 4.
The private sector accounted for Rs 71 of every Rs 100 spent on capital expenditure in 2005-06.
Of the 1,769 listed entities that spent Rs 1,09,845 crore (Rs 1098.45 billion) on capital expenditure in 2005-06, 1,559 private companies' contribution was Rs 77,766 crore (Rs 777.66 billion). Forty-two PSUs collectively spent Rs 27,487 crore (Rs 274.87 billion) and 168 multinationals the remaining Rs 4,592 crore (Rs 45.92 billion).
Five years ago, India Inc had spent about one-third of this amount, Rs 36,000 crore (Rs 360 billion), on capital expenditure.
At that time, the private sector's share was around 59 per cent. Private companies had spent Rs 22,720 crore (Rs 227.2 billion) on capital expenditure in 2001-02, while PSUs spent Rs 12,678 crore (Rs 126.78 billion) and multinationals Rs 2,907 crore (Rs 29.07 billion).
The private sector has been on expansion mode in the last two years, raising its share in overall capital expenditure from less than 60 per cent between 2002 and 2004 to 64 per cent in 2005 and 71 per cent in 2006.
In contrast, the share of PSUs in capital expenditure has declined from around 35 per cent between 2002 and 2004 to 31.3 per cent in 2005 and 25 per cent in 2006. The share of multinational companies in capital expenditure fell from 7.6 per cent in 2002 to 4 per cent at present.
"There is nothing surprising about this trend. All the action is in the private sector. Barring ONGC, no other PSU is active overseas. Even on the domestic turf, there has not been much of an investment except by public sector oil companies, which have been strengthening their marketing networks," said an economist with a large corporation.
Overall, the five-year compounded annual growth rate of India Inc's capital expenditure is 17.55 per cent. However, private companies' capital expenditure has been growing at a much faster 21.3 per cent.
For PSUs, the five-year compounded annual growth rate is 10.6 per cent while for multinationals capital expenditure has been growing at 6 per cent.
Of the total 1,559 firms studied in the private sector, the top 25 accounted for 50 per cent of the total capital expenditure and the top 100 for 72 per cent.
Similarly, of the 42 PSUs studied, the top 10 shared almost 93 per cent of the total capital expenditure. Among multinationals, 10 of the 162 firms accounted for 65 per cent of the total capital expenditure and the top 25 accounted for 82 per cent.
Entrepreneurs are in the forefront with capital expenditure plans, accounting for almost one-fourth of the total capital expenditure made by the private sector. Their capital expenditure has been growing at a five-year compounded annual growth rate of 51.5 per cent.
After unveiling a Rs 25,000 crore (Rs 250 billion) expansion plan in the retail space, Mukesh Ambani has increased group flagship Reliance Industries' capital expenditure by 10 times.
The Tata group's capital expenditure has been rising at a compounded annual growth rate of 12.9 per cent to Rs 5,066 crore (Rs 50.66 billion) in the last five years.
