India's Investment Boom: How FY20-25 Became Strongest Growth Period Since 2010

In particular, construction material, electricity generation and consumer goods led the addition. Metals have been on a downward trend in the past two five-year periods.

"On the contrary, the chemical sector has been adding capacity in the past two five-year periods, which is likely to give growth once demand recovery happens," PL Capital said in its report.

According to the report, the construction materials sector has witnessed significant volatility in GFA growth over the past two decades.

In FY05-10, GFA grew by 233.71 per cent, supported by rapid urbanisation, real estate expansion, and infrastructure development. Meanwhile, growth moderated to 94.68 per cent in FY10-15 due to project delays and reduced private investment.

A sharp decline of -94.59 per cent in FY15–20 was seen, driven by high input costs, regulatory challenges (RERA, GST), demonetisation-led liquidity stress and the NBFC funding crisis that dampened housing and infrastructure activity.

The sector rebounded strongly in FY20–25, recording an exceptional 2,802.32 per cent growth, fueled by record government capital expenditure, revival in real estate, and large-scale infrastructure programs such as Smart Cities Mission, Bharatmala, and PM Awas Yojana, the report noted.

Meanwhile, after the growth of 172 per cent in FY05-10 over FY00-05 and again 174 per cent in FY10-15 over FY05-10 on the back of a global commodity boom and strong domestic investment, the metal sector has shown degrowth in GFA of 5 per cent during FY15-20 and again degrowth of 36 per cent during FY20-25 due to subdued global prices, excess capacity and high leverage.

The Machinery sector has seen a steady and sharp decline in GFA growth over the last 20 years, said the report.

- IANS