Page 38 - CII-ARTHA

ARTHA

services also increased significantly to Rs 0.8 lakh crore A strengthening private capex
from Rs 0.3 lakh crore a year earlier, raising the sector’s cycle will complement public
share to about 32 per cent of total completed projects, infrastructure spending and
indicating a strengthening pace of implementation in support India’s medium-term
service-sector projects.
growth momentum

Conclusion: Private Investment
Cycle Showing Early Signs of The recent pickup in private investment has important
Revival implications for India’s medium-term growth trajectory.

A strengthening private capex cycle will complement
Taken together, the evidence suggests that private the ongoing public infrastructure push, expand
investment activity in India has begun to strengthen after productive capacity across sectors, and support
a prolonged period of weakness. While realised large-scale employment generation. At the same time,
investment based on balance sheet data has shown a translating rising investment intentions into sustained
gradual improvement in recent years, more recent
indicators from the CMIE Capex database point to a capital formation will depend on stable demand
stronger pickup in fresh investment intentions during conditions, macroeconomic and financial stability, and
FY26 so far, led primarily by manufacturing and timely project execution. The pace at which the current
electricity. The increase in project completions also pipeline of announced projects moves through the
indicates some improvement in the pace at which implementation cycle will therefore be critical in
previously announced projects are translating into determining the durability of the investment recovery
realised capital formation. and its contribution to future growth.

*********

38