Private investment jumps to Rs 56 lakh crore in FY26, signalling capex momentum: SBI Research
Mumbai, June 7
Private investment announcements rose sharply to Rs 56 lakh crore in FY26 from Rs 37 lakh crore in the previous year, indicating that investment momentum in the economy is gathering pace despite concerns over weak private sector capital expenditure, according to an SBI Research report.
In its latest Ecowrap report, SBI Research said, "Private investment announcements in FY26 is Rs 56 lakh crore from Rs 37 lakh crore in previous year."
The report noted that overall investment announcements in the economy have risen significantly over the years, reflecting increasing confidence among businesses.
"The total investment announcements shows an increasing trend through the period from Rs 17 lakh crore in FY19 to Rs 80 lakh crore in FY26," SBI Research said.
According to the report, manufacturing remained the largest contributor to fresh investment proposals during FY26.
"The manufacturing sector contributes around 28.9%, followed by power sector (28.7%) and building infrastructure (23.1%) in total new investment announcements of FY26," it said.
SBI Research argued that the latest GDP data also point to strengthening investment activity in the economy.
"It's now an opportune time to understand the trends in private investment as the official GDP data shows investment momentum has gained momentum in FY26, with particularly a large uptick in Q4," the report said.
The report highlighted that gross fixed capital formation, a key measure of investment in the economy, grew 10.8 per cent in the fourth quarter of FY26, reflecting strong investment activity.
Apart from new project announcements, SBI Research said the expansion of corporate assets also suggests sustained investment by India Inc.
"Apart from new investment announcement, another important data point is addition in gross block," the report said.
It added that the gross block of more than 5,000 listed companies increased substantially over the last four years.
"Gross block of Indian Inc., represented by around 5000+ listed entities, is estimated to have increased from Rs 87 lakh crore as of March 2022 to Rs 145 lakh crore as of March'2026," the report said.
SBI Research further noted that companies have consistently expanded their productive assets over the past five years.
"What is pertinent to mention is on an average Indian Inc have added more than Rs 13 lakh crore of gross block yearly in last five years," it said.
The report comes at a time when private sector capital expenditure has remained a key focus area for economists and policymakers assessing the durability of India's growth momentum.
According to SBI Research, the rise in investment announcements and asset creation suggests that private investment activity is strengthening and becoming a more important driver of economic growth.
— ANI
Reader Comments
Impressive numbers but I'm cautiously optimistic. We've seen investment announcements before that didn't fully materialize on the ground. The gross block addition of Rs 13 lakh crore yearly is encouraging though — at least companies are putting money into productive assets. Let's see if the MSME sector also benefits.
As someone working in the power sector, I can confirm the momentum is real. Our company has added new capacity this year. The 28.7% share from power makes sense with all the renewable energy push. India's infrastructure story is getting stronger by the day.
Great numbers, but where's the middle class benefit? Investment is fine, but if it doesn't create jobs and increase disposable income, these crore figures just stay on paper. The GDP growth is good but let's see wages and consumption data too.
Rs 17 lakh crore in FY19 to Rs 80 lakh crore in FY26 — that's almost 5x growth in 7 years! भारत माता की जय! 🇮🇳 The building infrastructure share of 23.1% will really boost connectivity across states. Just hope projects don't get stuck in bureaucratic delays like before.
The gross block data is very telling — from Rs 87 lakh crore to Rs 145 lakh crore in 4 years. That's real asset creation, not just announcements. Companies are confident about long-term demand. But we need to watch if this is concentrated in a few large players or broad-based across sectors.
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