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Domestic Trends

FY25 Capex However, despite the strong momentum in the final quarter, the private sector amounted to Rs 26.8 lakh crore, whereas
total new announcements for 2024-25 grew by just 2.1 per
new project announcements by the government sector
cent to stand at Rs 38.3 lakh crore, with government proposals
totalled Rs 11.5 lakh crore for full year FY25. The government's
Trends: increasing by 41.7 per cent and private sector investments capex plans were subdued due to the April-May national
contracting by 8.8 per cent. New project announcements by
elections but gained momentum from Q2FY25.

Government 50.00 New project announcements (Rs lakh crore) 38.28

41.10
37.49
Investments Rise 40.00 19.40 20.24 25.13 32.28 29.38 26.79
30.00

Post-Elections 20.00 10.23 9.07 7.42 15.87 8.82 8.11 11.49
12.76
10.00
11.18
9.18
9.25
5.34
0.00
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Government Private sector Overall
Source: CMIE Capex database

Key AMONG THE MANUFACTURING SECTOR, METALS Sector-wise new project announcement
AND CHEMICALS SECTOR LED NEW
Takeaways INVESTMENTS IN FY25 (Rs lakh crore)
2023-24 2024-25
On the sectoral front, 41 per cent of the overall new project
India's investments saw a significant boost from On the sectoral front, from the manufacturing announcements in 2024-25 came from the manufacturing Manufacturing 37.4 38.2
high-cost government projects mainly in the sector, metals and chemical sectors led new sector, particularly from Metals and Chemicals sector. Metals & metal products 2.4 5.2
power sector in Q4FY25, leading to record new investments in 2024-25. Electricity and services (other than financial) sector accounted
project announcements totalling Rs 18.88 lakh for 36 per cent and 18 per cent of the new project Chemicals & chemical products 5.8 5.1
crore, with substantial contributions from both The value of completed projects in 2024-25 announcements, respectively. Machinery 3.5 2.2
the private and government sectors. came at a four-year low of Rs 4.78 lakh crore
as compared to Rs 9.41 lakh crore in the Within the services sector (other than financial), nearly 78 per Transport equipment 1.0 1.5
However, despite the strong momentum in the previous year. cent of the new project announcements were concentrated in Electricity 11.7 13.6
final quarter, total new announcements for the transport services sector, while another 11 per cent came
2024-25 grew by just 2.1 per cent to stand at Rs To further boost private investments in the from the information technology sector. Services (other than financial) 8.9 7.0
38.3 lakh crore, with government proposals economy, the government may consider Transport services 7.3 5.4
increasing by 41.7 per cent and private sector launching a cohesive and integrated trade,
investments contracting by 8.8 per cent. investment and industrial policy. Sector-wise share in overall Information technology 0.7 0.8
new project announcements in 2024-25 (%)
Note: The sum of sub-sectors does not equal the overall total because
Construction & real only key sub-sectors are reported.
estate 5%
Services
A n analysis of capex trends from CMIE (data extracted as A POWER-FUL SPIKE IN NEW INVESTMENTS financial) 18% Source: CMIE Capex database
(other than
on 5th April, 2025) indicates that India’s investments
received a significant boost from high-cost government IN Q4FY25 LED PRIMARILY BY THE
projects in the quarter ending March 2025, providing a GOVERNMENT SECTOR Manufacturing
potential last-minute push after a slow year. Consequently, new 41%
project announcements increased to Rs 18.88 lakh crore in the Government sector new project announcements soared to a high
fourth quarter of FY25, establishing a record for the highest of Rs 5.9 lakh crore in Q4FY25 from Rs 1.5 lakh crore in Q3FY25
quarterly investment proposals to date. Within this aggregate, and Rs 2.8 lakh crore in Q4FY24. The power sector remained a
private sector new investment announcements rose to Rs 12.9 dominant driver of new investment proposals, with
lakh crore in Q4FY25 from Rs 6.8 lakh crore in Q3FY25 and announcements totalling Rs 8.8 trillion in the quarter ending March Electricity
Rs 12.5 lakh crore in Q4FY24. 2025. A standout contribution came from NTPC, which unveiled 36%
three largest projects in the power sector during the quarter. Mining
1
0%
Source: CMIE Capex database
Madhya Pradesh Renewable Energy Project, NTPC Green Energy (NGEL), Chhattisgarh Nuclear Power Plant Project
1
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