Capitalising on the resurgence of new projects within the Manufacturing sector, project investments experienced a healthy revival in July 2024. The first quarter of FY2025 had witnessed a downturn in fresh investments, largely due to significant declines in the Manufacturing and Infrastructure sectors. However, the establishment of a stable new Central government provided the necessary impetus for a strong recovery in project investments in July 2024. During this month, 1,050 new projects were announced, totalling an investment of ₹4,06,863.22 crore. This represents a substantial increase compared to the 722 new projects worth ₹2,56,675.86 crore announced in the same period last year, reflecting a year-on-year growth of 58.51 percent. Notably, the month also saw the announcement of 74 mega projects (each costing ₹1,000 crore or more) with a total value of ₹2,91,411.68 crore.
Among the major sectors, Manufacturing and Infrastructure played key roles in reversing the downward trend in fresh investments observed during the first quarter of FY2025. Both sectors also demonstrated impressive year-on-year growth.
Manufacturing
In July 2024, the Manufacturing sector recorded remarkable growth, both in the number of new projects and in fresh investment commitments. Compared to 131 projects worth ₹36,914.83 crore in July 2023, July 2024 witnessed the announcement of 260 projects valued at ₹1,42,617.51 crore. This reflects a strong year-on-year growth of 286.34 percent, increasing the sector’s share of total investments from 14.38 percent to 35.05 percent. Out of the total 74 mega projects announced in July, 17 projects (₹1,23,101.32 crore) were in this sector. Sub-sectors such as Pharmaceuticals, Cement, Machinery, Electronics, and Automobiles saw a significant uptick in new investment commitments.
Infrastructure
The Infrastructure sector continued to dominate the capital expenditure landscape in July 2024, accounting for 44.66 percent of the total fresh investments. The number of projects surged from 533 to 722, with the investment value rising from ₹1,47,712.69 crore to ₹1,81,721.31 crore, marking a year-on-year growth of 23.02 percent. Within the Infrastructure sector, sub-sectors such as Roadways, Railways, Real Estate, and Power Distribution attracted the majority of investments announced during the month. This sector saw the announcement of 33 mega projects worth ₹96,778.65 crore.
Electricity
The Electricity sector experienced moderate growth, with the number of projects increasing from 30 in July 2023 to 47 in July 2024. Correspondingly, the investment in this sector rose from ₹64,496.41 crore to ₹72,099.42 crore, recording a year-on-year growth of 11.79 percent. Pumped Hydel Power projects and Solar Power projects continued to attract private investment. The sector announced eight Pumped Storage Hydel Power projects worth ₹33,955.75 crore and 36 Solar Power projects valued at ₹31,721.20 crore, aiming to add approximately 12,450 MW of new power generation capacity.
Mining
The Mining sector witnessed a decline in investment activity. The number of projects fell from 14 in July 2023 to 10 in July 2024, with the investment value decreasing from ₹5,855.96 crore to ₹3,055.46 crore. However, the Union Ministry of Coal initiated the 10th round of commercial auction of coal mines in June 2024, offering 67 coal mines. Successful bidding in this auction could lead to an increase in capital expenditure in the sector in the coming months.
Irrigation
The increase in fresh investment in the Irrigation sector was largely driven by the announcement of three mega irrigation projects by the Narmada Valley Development Authority in Madhya Pradesh, with a total investment commitment of ₹4,046 crore. Overall, 11 projects worth ₹7,369.52 crore were announced in July 2024. The largest project in this sector was the ₹1,447.83 crore Dhar Micro Lift Irrigation Scheme by the Narmada Valley Development Authority.
