Private sector investments surged in the second quarter of 2025-26 (Q2 FY26), signaling a revival in business confidence, according to data from Projects Today.
Fresh investment proposals from private promoters nearly doubled to Rs 10.55 trillion across around 1,800 projects, up from Rs 5.69 trillion in the same period last year, it has been learnt from a Business Standard report.
Overall, new investment projects in Q2 rose 62% to over Rs 15 trillion, taking total outlays in the first half (H1) of FY26 to Rs 34 trillion, marking a 22.3% increase over H2 FY25. Private sector plans accounted for more than 70% of this total, up from 61% in Q2 and H2 FY25, led by manufacturing and electricity projects. Foreign investors’ capex plans jumped 130% to Rs 3.56 trillion, while domestic private investments rose 32%, states the report.
“April-September 2025 showed resilience, with private-sector proposals in manufacturing and renewable energy leading the charge. Private investments are likely to retain their dominance in FY26,” Shashikant Hegde, CEO of Projects Today, has been cited in the report.
Key sectors attracting investment included metals, petrochemicals, fertilisers, electronics, automobiles, and digital infrastructure, according to the report.
Electricity sector outlays grew 38.5% to Rs 12.93 trillion, driven by large-scale solar, wind, thermal, and hydel projects. Manufacturing projects surged 34% to Rs 8.81 trillion. Irrigation investments, in the meantime, skyrocketed 188% to Rs 1.05 trillion, led by state-sponsored schemes such as Andhra Pradesh’s Polavaram-Banakacherla project and Maharashtra’s Poshir Dam.
Government-led infrastructure investment moderated, with new outlays down 2.5% to Rs 10.87 trillion in H1, though central and state projects are expected to rebound in the second half.
Among states, Maharashtra led in Q2 with 19.6% of new investments, followed by Andhra Pradesh at 19.2%, marking a sharp rise from 3.4% a year ago. Rajasthan and Gujarat followed, with sequential gains and marginal declines, respectively.
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