CII Advocates for Phased Fuel Excise Rollback as Private Sector Investment Surges
CII seeks phased fuel excise rollback as pvt sector capex hits ₹7.7 trn
Business Standard
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India's private sector capital expenditure surged by 67% to ₹7.7 lakh crore ($9.3 billion USD) in September 2025, according to the Confederation of Indian Industry (CII). Amid this growth, CII is calling for a phased rollback of the central excise cut on fuel over the next six to nine months as part of a broader five-point action agenda.
- 01Private sector capital expenditure rose to ₹7.7 lakh crore, a 67% increase from the previous year.
- 02CII calls for a phased rollback of the ₹10 per litre excise cut on petrol and diesel.
- 03Manufacturing accounted for nearly half of the total private capex, driven by metals, automobiles, and chemicals.
- 04Capacity utilization in manufacturing increased to 75.6% in Q3FY26.
- 05CII's agenda includes a 45-day MSME payment guarantee and a commitment to reduce fuel consumption.
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The Confederation of Indian Industry (CII) reported that India's private sector capital expenditure reached ₹7.7 lakh crore (approximately $9.3 billion USD) in September 2025, marking a significant 67% increase from ₹4.6 lakh crore a year prior. This surge is seen as a strong indicator of a revitalizing investment cycle within the country. CII has proposed a phased rollback of the ₹10 per litre cut in central excise duties on petrol and diesel, suggesting that this should occur over a period of six to nine months as crude oil prices stabilize. The five-point action agenda also includes initiatives aimed at supporting micro, small, and medium enterprises (MSMEs), such as a 45-day payment guarantee and strategies for enhancing supply chain resilience. The manufacturing sector led the investment growth, contributing ₹3.8 lakh crore, while services accounted for ₹3.1 lakh crore. CII's analysis reflects a broader trend of increasing capacity utilization and bank credit growth, supporting the call for industry cooperation during challenging global economic conditions.
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The proposed rollback of fuel excise could lead to increased fuel prices, affecting transportation and logistics costs for businesses and consumers alike. This may impact the overall cost of living and operational expenses for small enterprises.
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