According to Crisil Ratings, this represents a 15 per cent annual increase from the ₹13.3 lakh crore invested in the previous two years, highlighting the robust growth trajectory of India’s infrastructure landscape.
The real estate sector is witnessing a strategic transformation driven by sustained demand for premium housing and an increasing presence of Global Capability Centres in commercial spaces, according to the Economic Times.
Despite healthy sales and collections, new launches are pushing up inventory levels.
After reaching a low of 2.7 years in FY24, inventory is projected to rise to between 2.9 and 3.1 years this fiscal year.
Nevertheless, developer revenues are expected to maintain steady growth of 10-12 per cent annually, supported by continued demand for premium projects.
Commercial real estate is maintaining stable momentum, benefiting from India’s cost advantages and expansion of domestic sectors.
Net leasing is forecasted to grow by 7-9 per cent this fiscal year and the next, with annual demand expected to exceed 50 million square feet by FY27.
The roads sector is focusing on monetisation strategies, with the National Highways Authority of India’s substantial asset base of ₹3.5-4 lakh crore helping to increase its monetisation share from 14 per cent to 18 per cent.
Each sector faces unique challenges that could impact future growth.
Real estate developers risk taking on higher debt due to excess supply, while the renewables sector may face issues with transmission capacity lagging behind installations.
The roads sector could experience delays in monetisation due to approval or valuation hurdles.
Manish Gupta, Deputy Chief Ratings Officer at Crisil Ratings, said there has been significant capital deployment supporting these sectors.
“Cumulatively ₹2.1 lakh crore of equity capital has been deployed in these sectors over the past two fiscals, supporting credit profiles,” he said.
The renewable energy sector is evolving toward hybrid and storage-linked capacities.
Of the 75 GW of planned additions over the next two years, 37 per cent are expected to come from hybrid sources, a substantial increase from 14 per cent previously.
Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) are strengthening funding frameworks across these sectors, while strong operating cash flows are helping maintain financial stability despite various challenges.
Krishan Sitaraman, Chief Ratings Officer at Crisil Ratings, highlighted the consistent growth across these sectors.
“What remains constant across these three sectors is the strong investment growth,” he said.
“While adapting to the new business dynamics will pose some challenges, credit profiles of Crisil-rated developers and projects would remain resilient.”
