Chennai: New investments in infrastructure projects by the public and private sectors increased by 25% in fiscal 25. Among private sector investments, projects worth over Rs 1,000 crore have risen sharply.
Fresh investment in the country increased by 25.35% year-on-year, from Rs 35.23 crore in fiscal 2024 to Rs 44.15 crore in fiscal 2025. According to data from today’s projects, the number of new projects has also increased from 10,448 to 11,720.
One of the main reasons for overall growth in FY25 was the sharp growth of large projects – projects costing more than Rs 100 million. Overall, the number of large-scale projects announced rose from 531 in FY231 to 844 in FY25, marking a 59% increase in the number of projects. Total investment in these projects soared from Rs 24.71 crore to Rs 32.93 crore, with the investment value increasing by 33.2%.
Government-propaganda investment witnessed a growth of 24.24% from 13.78 crore in FY24 to 17.12 crore in FY25. The number of projects increased from 6,945 projects in FY25, compared with 5,561 in the previous fiscal year.
The value of investment in the central government rose sharply by 42.88%, from Rs 609 crore to Rs 877 crore, while the value of the state government rose from Rs 841 crore of Rs 769 crore to Rs 841 crore.
Private sector investments, including Indian and foreign promoters, increased by 26.06% from Rs 21.45 crore to FY24 to Rs 27.04 crore in FY255. However, the number of projects has dropped slightly, from 4,887 to 4,775, indicating that there are more large projects.
India’s private sponsors led the momentum by announcing a total investment of Rs 24.22 crore in 4,507 projects, at 32.90% in value. The contraction of foreign private investment fell by 12.46% to Rs 2.83 crore.
Manufacturing continues to account for a large portion of private investment at Rs 968 crore, followed by the power sector of Rs 10.16 crore. A major highlight is that private investment’s share in infrastructure has been increasing, attracting Rs 6.77 crore in 2,805 projects.
Manufacturing witnessed a contraction in its total investment share, falling from 33.79% to 24.67%. Sub-sectors such as electronics fell 41.7%, while cars fell 12.1%.
Infrastructure is the absolute largest investment recipient, and the momentum of infrastructure continues to grow as investment grows by 22.2%. In this area, fresh investment in roads, ports and power allocations have increased.
Investment in the construction sector rose 28.9%.
