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Pvt share in new projects at fresh high; overall investments drop

Financial Express Pune

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January 02, 2026

NEW INVESTMENTS BY the government sector contracted for three quarters in a row beginning the June 2025 quarter.

In contrast, private sector investments have been growing during the period.For instance, in June 2025 when government investments contracted 35% on year to ₹1.2 lakh crore, private sector investments grew 295% to ₹6.8 lakh crore. Similarly, in September, while government investments contracted 79% on year to ₹77,721 crore, private sector investments rose 27% to ₹7.8 lakh crore.

The share of the private sector in new projects grew from 68.6% in March 2025 to 85.2% in June and 91% in September. Within the private sector, while investments by the Indian private sector grew 21% on year in the quarter ended December, investments by foreign private sector contracted 24.2%.

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