India’s Private Capex Pipeline Rises 39% to US$ 1.05 Trillion
- IBEF
- October 26, 2026
India’s outstanding private capital expenditure (capex) pipeline reached Rs. 99.70 lakh crore (US$ 1.05 trillion) in September 2026, registering a 39% year-on-year increase and expanding to approximately 4.1 times its March 2014 level, according to a report by Union Bank of India. The pipeline increased by Rs. 46.40 lakh crore (US$ 488.16 billion) over the past two years, compared with a rise of Rs. 7 lakh crore (US$ 73.65 billion) during the eight years to March 2022. However, the number of projects increased by only 50% to 5,311, while the average project size rose 2.7 times to Rs. 1,878 crore (US$ 197.58 million). Manufacturing and electricity accounted for the largest shares of the pipeline, at Rs. 41.30 lakh crore (US$ 434.51 billion) and Rs. 32.20 lakh crore (US$ 338.77 billion), respectively, together representing 74% of the total. The services sector recorded the fastest growth, increasing by 347%.
The report highlighted a significant concentration of planned investments across sectors and states. Power generation, information technology and IT-enabled services (ITES), metals and chemicals together accounted for 80% of the pipeline, while ITES and conventional power contributed 87% of the annual increase. Maharashtra’s share rose from 9% in 2014 to 29% in September 2026, and the top five states accounted for 68% of the pipeline. In addition, 21 state-industry combinations represented 59% of the total. The report cautioned that planned investments could outpace actual project execution, as the value of planned investments increased by 87% over two years, compared with an 18% rise in the number of projects. It also highlighted the lag in power transmission infrastructure investment relative to power generation. Sectoral and geographical concentration, larger project sizes and potential execution delays were identified as key risks for lenders.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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