Daijiworld Media Network – New Delhi

New Delhi, Jan 27: Investment activity in India has witnessed robust growth, with total investment announcements reaching Rs 32.01 lac cr in the first nine months of FY25, marking a significant 39% rise from Rs 23 lac cr in the same period of FY24, according to a report by the State Bank of India (SBI).

The private sector has been a major driver, contributing nearly 70% of these announcements during the April-December 2024 period, compared to 56% in FY24. This reflects strong corporate confidence in the country's economic environment.

The gross block of Indian corporates surged to Rs 106.50 lac cr in March 2024, up from Rs 73.94 lac cr in March 2020, with an annual average addition of over Rs 8 lac cr over the past five years. Capital work in progress stood at Rs 13.63 lac cr as of March 2024, indicating continued momentum in project execution.

The ministry of finance highlighted significant developments in India’s investment ecosystem and external commercial borrowings (ECBs). Total outstanding ECBs reached $190.4 billion by September 2024, with $33.8 billion in registrations recorded by November 2024. Nearly half of these were directed towards importing capital goods, modernisation, local capital expenditure, and new projects.

Household savings also improved, with Net Financial Savings (HNFS) rising to 5.3% of GDP in FY24 from 5% in FY23, while savings in physical assets grew from 12.9% of GDP in FY23 to 13.5% in FY24.

Private corporate investment reached its highest level since FY16, contributing 11.9% of GDP in FY23 and projected to further rise to 12.5% in FY24. Government investment also achieved a historic high, accounting for 4.1% of GDP in FY23, the highest since FY12.

The report underscores India’s sustained economic momentum, driven by enhanced private sector contributions and strong investment activity across sectors.