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Capital expenditure by India's private corporate sector is estimated at Rs 3.2 lakh crore in 2026-27 based on the pipeline of ongoing projects, indicating continued momentum in private investment, according to an article in the Reserve Bank of India's September Bulletin.
The phasing profile of the pipeline projects based on all channels of financing taken together, suggests that the envisaged capex is estimated at Rs 3.2 lakh crore in 2026-27, indicating sustained momentum in private investment, the RBI said in its press release in the Bulletin. The estimate is based on projects financed through banks and financial institutions, external commercial borrowings (ECBs), and initial public offerings (IPOs). The Bulletin article said comparable capex from these funding channels stood at Rs 2.6 lakh crore in 2025-26. It added that complete information on projects that will be sanctioned during FY27 is not yet available, and therefore the outlook is based on the pipeline of projects sanctioned in earlier years. Private investment activity had strengthened in the previous financial year as well. The total cost of projects sanctioned by banks and financial institutions increased to a record Rs 4.4 lakh crore in 2025-26 from Rs 3.7 lakh crore in the previous year. Private corporate investment intentions remained resilient during 2025-26 despite a challenging global environment marked by heightened geopolitical tensions, trade policy uncertainty, and volatile financial markets, the Bulletin article said. Infrastructure remained the biggest destination for investment, accounting for 54.2 per cent of the total cost of projects sanctioned by banks and financial institutions in 2025-26. The power sector was the major contributor, followed by roads and bridges. The bulletin said, Infrastructure continued to dominate the investment landscape, led by the power sector. It also noted that greenfield projects accounted for 89.2 per cent of the total cost of projects reported by banks and financial institutions during FY26, pointing to capacity expansion by private companies. Looking ahead, the investment outlook is expected to remain healthy, although heightened global uncertainties are likely to temper the investment sentiment, the Bulletin article said. The RBI clarified that views expressed in Bulletin articles are those of the authors and do not represent the views of the Reserve Bank of India. (ANI)
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