Investment Announcements in India Soar to Rs 32.01 Lakh Crore Within 9 Months of FY25
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Synopsis
Investment announcements in India hit Rs 32.01 lakh crore in the first nine months of FY25, reflecting a 39% increase from the previous year. The private sector's contribution has grown significantly, signaling a positive investment climate and corporate confidence.
Key Takeaways
- Investment announcements increased to Rs 32.01 lakh crore.
- Private sector contributed nearly 70% in FY25.
- Gross block of corporates reached Rs 106.50 lakh crore.
- Household Net Financial Savings improved to 5.3% of GDP.
- Outstanding ECBs stood at $190.4 billion.
New Delhi, Jan 26 (NationPress) The cumulative investment announcements have reached Rs 32.01 lakh crore during the first nine months of the current fiscal year (FY25), signifying a remarkable 39 percent growth from Rs 23 lakh crore in the corresponding period of the previous fiscal year, indicating a favorable investment climate, according to a recent report from the State Bank of India (SBI).
The private sector represented nearly 56 percent (FY24) and approximately 70 percent (first nine months of FY25) of these announcements from April to December 2024, demonstrating robust corporate confidence.
As of March 2024, the total gross block of Indian corporates reached Rs 106.50 lakh crore, in comparison to Rs 73.94 lakh crore in March 2020.
Over the past five years, an average of over Rs 8 lakh crore has been added annually to the corporate gross block.
Moreover, capital work in progress was reported at Rs 13.63 lakh crore in March 2024, reflecting a solid pipeline of ongoing project development, as noted in the SBI report.
The investment landscape in India, along with external commercial borrowings (ECBs), has experienced remarkable advancements in recent years, as reported by the Ministry of Finance.
The SBI report outlined vital trends concerning investment announcements, the private sector's role, and the contribution of ECBs to corporate financing.
Investment activity in India is on an accelerating trajectory, largely driven by significant contributions from the private sector.
India’s Household Net Financial Savings (HNFS) surged to 5.3 percent of GDP in FY24, up from 5 percent in FY23.
Furthermore, savings in physical assets increased from 12.9 percent of GDP in FY23 to 13.5 percent in FY24.
Investment as a proportion of GDP has improved in recent years, supported by both government and private sector investments.
In FY23, government investment accounted for 4.1 percent of GDP, the highest since FY12. Meanwhile, private corporate investment rose to 11.9 percent of GDP in FY23, marking its highest level since FY16.
The share of private investment is anticipated to climb to around 12.5 percent in FY24, indicative of enhanced business sentiment. As of September 2024, the total outstanding ECBs reached $190.4 billion, according to the report.
By November 2024, total ECB registrations amounted to $33.8 billion, with nearly half of these registrations in FY24 dedicated to the import of capital goods, modernization, local capital expenditure, and new projects.
