Based on “the phasing profile of the pipeline projects’ finances,” an RBI research estimates that private corporate investment in India will increase by 54% to ₹2,45,212 crore in 2024–25 from ₹1,59,221 crore in 2023–24.
The study notes that phasing plans also show that the total amount of capital expenditure (capex) that the private corporate sector projected to undertake in 2023–2024 increased significantly by roughly 57% over the previous year.
The research also shows that during 2023–2024, private corporations’ investment intentions remained strong as evidenced by an increase in both the overall number of projects and the total cost of projects approved by banks and financial institutions (FIs). Green field (new) projects accounted for the majority of the projects financed, or roughly 89% of all projects.
According to the report, the “Roads & Bridges” and “Power” sectors lead the infrastructure sector in attracting a significant portion of the anticipated capital expenditure.
The private corporate sector’s investment activities are a major factor in determining the general investment climate of the economy.
According to the report, the study offers an evaluation of the investment intentions and the near-term prognosis of private corporations using data on capex phasing plans provided by the private corporate sector.
According to the RBI’s monthly “State of the economy” bulletin, rural consumption is rebounding in India, contributing to the country’s improving aggregate demand conditions.
It is anticipated that this increase in demand will rekindle the private sector’s previously muted involvement in overall investment, which will promote growth.
The aggregate demand conditions are picking up steam, according to the RBI data, following a period of weakness in the first quarter of 2024–2025.
Fast-moving consumer goods (FMCG) volume growth is starting to be driven by rural consumers’ purchasing on the backs of rising incomes, which reflects improving fundamentals.
The penetration of utilities, such as LPG, electricity, and two-wheelers, is resulting in increased spending on newly adopted categories including bottled soft beverages, insecticide, and floor and toilet cleaners.
The growing number of savings bank accounts and their outstanding balances indicate that rural saving is also increasing.
