Chennai: Fresh investments by both public and private sectors in infrastructure projects grew 25 per cent in FY25. Among private sector investments there was a sharp rise in projects valued over Rs 1000 crore.
The country recorded a robust year-on-year growth of 25.35 percent in fresh investments, rising from Rs 35.23 lakh crore in FY2024 to Rs 44.15 lakh crore in FY2025. The number of new projects also rose from 10,448 to 11,720, as per the data of Projects Today.
One of the primary reasons for the overall growth in FY25 was the sharp increase in mega projects – projects costing over Rs 1,000 crore. At an aggregate level, the number of mega projects announced rose significantly from 531 in FY24 to 844 in FY25, marking an impressive increase of 59 per cent in project count. The total investment in these projects surged from Rs 24.71 lakh crore to Rs 32.93 lakh crore, registering a growth of 33.2 per cent in investment value.
Government-promoted investments witnessed an increase from Rs 13.78 lakh crore in FY24 to Rs 17.12 lakh crore in FY25, representing a growth of 24.24 per cent. Project count went up from 6,945 projects in FY25 compared to 5,561 in the previous fiscal.
The Central Government investment grew sharply by 42.88 percent in value, from Rs 6.09 lakh crore to Rs 8.70 lakh crore, while the state governments registered a 9.47 per cent modest increase to Rs 8.41 lakh crore from Rs 7.69 lakh crore.
Private sector investments, including both Indian and foreign promoters, rose by 26.06 per cent in value from Rs 21.45 lakh crore in FY24 to Rs 27.04 lakh crore in FY25. However, the number of projects slightly declined from 4,887 to 4,775, suggesting the presence of more large projects.
Indian private promoters led the momentum by announcing a total investment of Rs 24.20 lakh crore across 4,507 projects—up by 32.90 percent in value terms. Foreign private investment saw a contraction, falling by 12.46 per cent to Rs 2.83 lakh crore.
The Manufacturing sector continued to account for a significant portion of private investments at Rs 9.68 lakh crore, followed closely by the power sector at Rs 10.16 lakh crore. A major highlight is the increasing share of private investment in Infrastructure, which attracted Rs 6.77 lakh crore across 2,805 projects.
Manufacturing witnessed a contraction in its share of total investment, falling from 33.79 per cent to 24.67 per cent. Sub-sectors such as electronics saw a decline of 41.7 per cent and automobiles 12.1 per cent.
Infrastructure, the largest recipient of investment in absolute terms, sustained momentum as investment increased by 22.2 per cent. Within this sector, fresh investment in the roadways, ports and power distribution increased.
The construction sector posted a robust rise of 28.9 per cent in investments.