New Delhi, Aug 10 (KNN) Investment announcements in India stood at Rs 26.75 lakh crore between April 1 and August 5 of 2026-27, with the information technology-enabled services (ITeS) sector accounting for 56 percent of the proposed investments, according to a Bank of Baroda Economics Research report.
ITeS Sector Accounts For 56% Of Investment Announcements
Of the Rs 14.98 lakh crore announced in the ITeS sector, nearly 99 percent is concentrated in data centres and artificial intelligence (AI), involving 13 companies, reported Business Standard.
However, investment activity remains concentrated in a few sectors and has yet to expand significantly into consumer-oriented industries. Investment announcements in consumer goods, including automobiles, were below Rs 2,000 crore, the report said.
Electronics And Renewable Energy Attract Fresh Investments
The electronics segment received proposed investments of around Rs 51,000 crore, with nearly two-thirds directed towards solar cells and batteries. The report noted that some of these investments could be linked to incentives available under the Production Linked Incentive (PLI) scheme.
Renewable energy attracted around Rs 25,000 crore, largely towards solar power projects, while aluminium and steel are witnessing increased investment amid rising infrastructure demand.
Nuclear Power Drives Conventional Electricity Investments
Conventional electricity emerged as the second-largest category, with proposed investments of Rs 6.86 lakh crore from seven companies. Four of these companies, accounting for Rs 6.5 lakh crore of the proposed outlay, are involved in the nuclear power sector.
Domestic Private Sector Leads Investment Announcements
The domestic private sector accounted for 86 percent of total investment announcements, followed by foreign private companies at 7.9 percent.
Central government entities and commercial enterprises accounted for 5.6 percent, while state government entities and commercial enterprises made up the remaining 0.4 percent.
Investment Growth Faces Geopolitical Headwinds
The report projects India’s GDP growth at 6.6-6.8 percent in the current year, lower than the previous year but still among the highest globally. Investment growth is expected at 8.5-9.5 percent, compared with 9.9 percent recorded last year.
The moderation in investment growth is attributed largely to uncertainty arising from the ongoing conflict in West Asia, the report said.
(KNN Bureau)
