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Manufacturing Dominated New Projects in Q1, Share at 10-Quarter High
Business Standard
|July 14, 2025
More than half of all new project announcements in the June 2025 quarter came from the manufacturing sector.
Manufacturing projects worth around ₹2.3 trillion were announced in the three-month period, accounting for 54 per cent of total new projects, according to data from the Centre for Monitoring Indian Economy (CMIE). This is the highest share in 10 quarters. Such a high share has occurred less than six times since 2010.
The government has been driving much of the capital expenditure (capex) in recent years through its announced investments in roads, railways, and other infrastructure projects. The value and share of manufacturing projects assumes significance because of the sector's potential for job creation and what it might mean for private capex, seen to be a major driver of economic growth.
Many of the announcements in previous quarters have been in the nature of agreements at state-organised investment summits, and companies may not be obligated to follow through.
This story is from the July 14, 2025 edition of Business Standard.
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