India's Domestic Investment Boom: A Rs 37 Lakh Crore Surge in Two Years

India's domestic investments surged past Rs 37 lakh crore in FY23 and FY24, marking a dramatic increase from Rs 10 lakh crore in FY21, with significant contributions from both government and private sectors. Private sector participation rose to over 70% in 9MFY25, driving growth across manufacturing and power sectors.

A recent report by the State Bank of India (SBI) reveals that domestic investment announcements in India have witnessed an extraordinary surge, crossing Rs 37 lakh crore over the past two fiscal years (FY23 and FY24). This marks a significant rise from Rs 10 lakh crore recorded in FY21, largely propelled by robust contributions from both the government and private sectors.

The report highlighted that in the first nine months of FY25, investments valued at over Rs 32 lakh crore were announced, compared to Rs 23 lakh crore during the same period in the previous year. This growth underscores the sustained momentum in the country's investment activities.

A notable trend in the report is the increasing engagement of the private sector in investment announcements. From a 50% share in FY21, private sector involvement surged to approximately 68% in FY22 and FY23. This upward trajectory continued in 9MFY25, with private entities accounting for over 70% of the announced investments.

The report detailed sector-wise insights, indicating that the manufacturing sector led with 1,493 projects worth Rs 5,97,921 crore during 9MFY25, while the power sector attracted the most substantial investment value with 1,172 projects worth Rs 13,58,783 crore. In the mining sector, 72 projects were recorded, totaling investments of Rs 56,628 crore, whereas the oil and gas sector saw 62 projects valued at Rs 35,623 crore. These numbers reflect ongoing efforts to stimulate economic activity and establish a conducive investment environment across key sectors.

(With inputs from agencies.)