Power and digital infrastructure drive private capital expenditure in India
- IBEF
- November 10, 2026
Private sector investment in India is gaining momentum, although the recovery remains concentrated in infrastructure-linked sectors such as power, information technology, metals and chemicals. Finance Minister Ms. Nirmala Sitharaman highlighted the improving investment trend at the FE Leadership Awards, noting that private investment is picking up, but remains concentrated in select sectors. The Goods and Services Tax (GST) reforms introduced in September 2025 have improved the visibility of consumption and demand, providing businesses with greater confidence to invest, expand production and increase capacity. Supporting this trend, gross fixed capital formation (GFCF) grew by 11.9% at constant prices in the April-June quarter, indicating a strong, although uneven, investment cycle.
According to data compiled by Reserve Bank of India staff, banks and financial institutions sanctioned loans for 1,032 projects with an aggregate project cost of Rs. 4.4 lakh crore (US$ 49.79 billion) in FY26, compared with 907 projects costing Rs. 3.7 lakh crore (US$ 42.79 billion) in FY25. Investment intentions were recorded for 1,839 projects worth Rs. 5.6 lakh crore (US$ 63.37 billion) in FY26, up from 1,581 projects involving Rs. 5 lakh crore (US$ 57.82 billion) in the previous year. Momentum continued in FY27, with the value of new investment projects announced rising 35% year-on-year to Rs. 31 lakh crore (US$ 326.14 billion) in the first half. Furthermore, the outstanding private capital expenditure pipeline reached Rs. 99.7 lakh crore (US$ 1.05 trillion) in the July-September quarter, increasing 39% year-on-year. Manufacturing and electricity together accounted for 74% of this pipeline, highlighting their significant role in India's private investment cycle.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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