Private capex led the way in H1 with manufacturing boost

New infra investments down; Andhra records the sharpest leap in fresh outlays

- VIKAS DHOOT

Signalling a rebound in private investments, the second quarter of 2025-26 (FY26) witnessed a near doubling in the value of new investment plans from private promoters, with fresh outlays of %10.55 trillion in about 1,800 projects, compared to%5.69 trillion a year ago.

The total value of new investment projects surged 62 per cent in Q2 to cross %15 trillion, taking overall investments in the first half (H1) of FY26 to %34 trillion, 22.3 per cent higher than the previous six months, according to data from investment monitoring firm Projects Today.

Within this, new private sector capex plans rose a sharply 41 per cent in H1FY26 relative to H2FY25, at %24 trillion, led by a spurt in manufacturing and electricity projects, even as infrastructure building plans moderated with new public capex projects slowing down. Notably, foreign investors’ capex plans soared 130 per cent to over %3.56 trillion, while domestic private players recorded a 32 per cent uptick.

Private investment projects constitute well over 70 per cent of the nearly %34 trillion of fresh investments announced in H1 this year. This reflects a significant shift after years of heavy lifting on the investment front by government and public-sector capex to compensate for tepid private investment impulses.

For context, the private sector's share of new capex was just around 61 per cent in Q2 as well as H2 of FY25. New central government investment plans grew 15 per cent year-on-year to ₹2.07 trillion in Q2, with states accelerating new capex projects by 36 per cent to over 2.38 trillion. However, on a sequential six-month basis, central capex plans were down 15 per cent in Hi this year compared to H2FY25, while the value of states' investment projects declined 1 per cent.