Private capex roars back!

`56L cr investment surge signals growth momentum

Business Desk MUMBAI

Private sector investment announcements surged to ₹56 lakh crore in FY26 from ₹37 lakh crore in the previous fiscal, indicating that corporate capital expenditure is gaining momentum and becoming a stronger pillar of India's economic growth, according to a report by SBI Research.

The report noted that total investment announcements in the economy have shown a steady rise over the years.   They increased from ₹17 lakh crore in FY19 to ₹80 lakh crore in FY26, signalling sustained expansion plans across sectors.

The research said the latest GDP data also supports the view that investment activity is strengthening. Gross Fixed Capital Formation grew 10.8% year-on-year in the fourth quarter of FY26, indicating a sharp pickup in capital expenditure.    

Mfg leads new Projects: Manufacturing emerged as the largest contributor to fresh investment proposals during FY26, accounting for 28.9% of total announcements.  

The power sector followed closely with a 28.7% share, while building infrastructure contributed 23.1%.  

Corporate asset base expands:   Apart from project announcements, SBI Research pointed to the steady rise in productive assets among listed companies as evidence of ongoing investment activity.  The gross block of more than 5,000 listed companies increased from ₹87 lakh crore in March 2022 to an estimated ₹145 lakh crore by March 2026.

On average, Indian companies have added over ₹13 lakh crore worth of productive assets annually during the last five years.  The combination of rising investment announcements and expanding corporate assets indicates that private investment is increasingly emerging as a key driver of India's growth momentum.