Blitz Bureau
NEW DELHI: The total investment announcements stood at Rs 32.01 lakh crore in the nine months this fiscal (FY25), marking a 39 per cent increase from Rs 23 lakh crore in the same period last fiscal, reflecting a positive investment outlook, the Government said on January 27, citing a recent report by the State Bank of India (SBI). The private sector accounted for nearly 56 per cent (FY24) and nearly 70 per cent (nine month in FY25) of these announcements in the April-December 2024 period, signalling strong corporate confidence.
As of March 2024, the gross block of Indian corporates reached Rs 106.50 lakh crore, compared to Rs 73.94 lakh crore in March 2020. Over the last five years, an average of more than Rs 8 lakh crore has been added annually to the corporate gross block.
Additionally, capital work in progress stood at Rs 13.63 lakh crore in March 2024, indicating strong ongoing project development, said the SBI report. India’s investment ecosystem and external commercial borrowings (ECBs) have witnessed significant developments over the past few years, according to the Ministry of Finance.
The recent report by the State Bank of India (SBI) has highlighted trends in investment announcements, private sector’s contribution, and role of ECBs in corporate financing. Investment activity in India continues to grow at a rapid pace, with significant contributions from the private sector.
Household Net Financial Savings (HNFS) in India improved to 5.3 per cent of GDP in FY24 from 5 per cent in FY23.Additionally, savings in physical assets increased from 12.9 per cent of GDP in FY23 to 13.5 per cent in FY24.
Investment as a share of GDP has improved in recent years, led by both government and private sector contributions.
In FY23, government investment reached 4.1 per cent of GDP, the highest since FY12. Private corporate investment rose to 11.9 per cent of GDP in FY23, its highest level since FY16.
The share of private investment is projected to further increase to around 12.5 per cent in FY24, reflecting improved business sentiment. The total outstanding ECBs stood at $190.4 billion as of September 2024, according to the report.
By November 2024, total ECB registrations stood at $33.8 billion. Nearly half of the registration, in FY24, are for the import of capital goods, modernisation, local capital expenditure, and new projects.
