Investments in renewables, roads & realty to touch ₹17.5L cr: Crisil

Investments in the renewable energy, roads, and real estate sectors are expected to touch ₹17.5 lakh crore over FY26 and FY27, according to Crisil Ratings.

- Arunima Bharadwaj

While renewable energy is witnessing accelerated adoption of storage-linked capacities, a sharper focus on monetisation is on the cards in the roads sector, the firm noted. Premiumisation in residential real estate and influx of global capability centres (GCCs) in commercial real estate are driving realignment of offerings by developers.

"What remains constant across these three sectors is the strong investment growth. Over this fiscal and next, investments may rise at around 15% annually, reaching around ₹17.5 lakh crore compared with around ₹13.3 lakh crore in the preceding two fiscals," said Krishan Sitaraman, chief ratings officer, Crisil Ratings.

In renewable energy, to address the intermittency of power supply, there is a transition towards hybrid or storage-backed capacities, which facilitates scheduling of power round-the-clock with greater confidence. The country expects to add 75 GW capacity in this and next fiscal, of which hybrids will account for ~37%.

This is a massive jump, considering hybrids accounted for ~14% of the capacity additions over the preceding two fiscals.

In roads, which have a significant multiplier effect on the economy, a pick-up in project awarding will be important to revitalise the sector's growth.