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India’s private sector investment poised to surge in 2026-27: RBI bulletin

India’s private sector investment poised to surge in 2026-27: RBI bulletin

New Delhi, Sep 27 (SocialNews.XYZ) The capital expenditure in India’s private sector is expected to go up to Rs 3.2 lakh crore in financial year 2026-27 from Rs 2.6 lakh crore in 2025-26 despite the global economic uncertainties, according to a report in the Reserve Bank of India’s (RBI’s) September bulletin.

The phasing profile of pipeline projects financed through three channels - banks and financial institutions (FIs), external commercial borrowings (ECBs) and initial public offerings (IPOs) - points to an increase in envisaged capital expenditure in 2026-27 over the previous financial year, the report stated.

 

"Looking ahead, the investment outlook is expected to remain healthy, although heightened global uncertainties are likely to temper the investment sentiment," it said.

The report, compiled by Purnendu Kumar, Snigdha Yogindran, Sukti Khandekar, and Bhavyashree K, from the RBI’s Department of Statistics and Information Management, further states that the balance sheet position of Indian corporates has strengthened considerably over recent years, driven by deleveraging and robust internal accruals.

Simultaneously, the domestic banking system, underpinned by strong capital and liquidity buffers, and improvement in asset quality and sustained credit growth, continues to support economic activity.

It highlights that during 2025-26, the infrastructure sector remained the major sector accounting for a 54.2 per cent share in the total cost of projects, primarily driven by investment in ‘Power’, followed by ‘Roads & Bridges’.

Besides infrastructure, construction, chemicals & pesticides, metal & metal products and cement also accounted for a sizeable share in the total cost of projects.

Among states, Maharashtra emerged as the top in attracting capex projects, followed by Gujarat, Rajasthan, Karnataka, Andhra Pradesh, and Tamil Nadu.

These six states together accounted for a 67.1 per cent share in the total project investments during 2025-26.

During 2025-26, 12 mega projects and 100 large projects got sanctioned by banks and FIs. The share of mega projects and large projects in the total project costs was 17.0 per cent and 51.3 per cent, respectively.

Greenfield (new) projects accounted for 89.2 per cent of the total cost of projects, reported by banks and FIs during 2025–26. This is broadly in line with the trend observed in previous years, the report added.

Source: IANS

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India’s private sector investment poised to surge in 2026-27: RBI bulletin

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