New Delhi, Sept. 29 -- For the last two years, the government has aimed to nudge the private sector into investing more by expanding business capacities. Yet, the latest Reserve Bank of India (RBI) data on capital expenditure (capex) suggests that private-sector investment optimism remains 'tepid' at best.

The RBI compiles this data from project approvals reported by banks and financial institutions (FIs), supplemented with information on equity and debt raised by companies and foreign currency borrowings.

Capex, whether for a new plant or expanding an existing one, is typically spread across years. Therefore, total capex for any given year falls into two categories: expenditure on projects planned in earlier years but budgeted for that...