In the first quarter of the current fiscal year, major project announcements from central government agencies were delayed due to the election code of conduct during the general elections. The private sector also postponed some of their large-scale capital expenditure plans. However, after the formation of a stable government on June 9, 2024, the second quarter of FY25 saw a significant rise in investment announcements by both public and private sectors, resulting in a 42.52 percent increase in new project investments. The investments in Q2/FY25, amounting to Rs 9,21,081.08 crore, were the second highest in the last 18 months, following Q4/FY24.
According to ProjectsToday’s 96th Survey of Projects Investment in India, 2,443 new projects worth Rs 6,46,293.83 crore were announced in Q1/FY25, which increased to 2,684 projects totalling Rs 9,21,081.08 crore in Q2/FY25. The number of mega projects (worth Rs 1,000 crore or more) also rose from 132 projects valued at Rs 4,01,772.89 crore in Q1 to 173 projects worth Rs 6,37,988.45 crore in Q2.
By sector, Manufacturing and Infrastructure showed robust growth in Q2/FY25, while Electricity maintained steady performance. In contrast, Mining and Irrigation showed mixed results. The Manufacturing sector’s investments increased from Rs 1,24,579.84 crore in Q1 to Rs 2,22,580.27 crore in Q2, led by sectors such as Steel, Cement, and Automobiles. Prominent projects included a Rs 16,580 crore steel unit by Lloyds Metals in Maharashtra and JSW Green Mobility’s Rs 27,200 crore electric vehicle project.
The Infrastructure sector dominated total investments, increasing its share from Rs 2,87,480.46 crore in Q1 to Rs 4,16,555.43 crore in Q2, with a healthy rise in road projects promoted by NHAI and MSRDC. The Electricity sector also saw growth, driven by renewable energy projects, with investments reaching Rs 2,51,373.07 crore in Q2.
Meanwhile, the Mining sector’s investments declined by 18.14 percent, while Irrigation remained relatively modest with Rs 13,042.47 crore invested in Q2. Despite a mixed performance in the Construction sector, investments in real estate fell by 22.53 percent.
Overall, the second quarter of FY25 demonstrated renewed investor confidence and a stable uptick in project activity across various sectors.
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