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Investment announcements by India Inc rose sharply to around Rs 84.7 lakh crore in FY26, with a growing share of proposed investments moving towards sectors such as renewable energy and data centres, according to the latest SBI Ecowrap report.

The report said the changing composition of investment also points to a shift in the country's growth pattern, as capital spending increasingly moves towards newer sectors of the economy. “The needle of investments, looking at sectoral figures, has largely moved to New Age economy, renewables to Data Centers (~31% of total), necessitating reinterpretation of traditional Growth model,” the report stated.

Growth in Overall and Private Sector Investment

Gross Fixed Capital Formation Improves

SBI also said overall investment in the economy has been improving. Incremental Gross Fixed Capital Formation (GFCF) stood at Rs 11.1 lakh crore in FY26, with the actual level of GFCF at Rs 120.6 lakh crore, or 34.9 per cent of GDP. GFCF broadly refers to investment in fixed assets such as machinery, infrastructure, buildings and equipment that can support future production.

Private Investment Picks Up

The report also pointed to an improvement in private-sector investment compared with the pre-pandemic period. Average incremental investment by the consolidated private sector during FY23-FY25 stood at Rs 3.5 lakh crore, compared with Rs 3.3 lakh crore during the six-year period ended FY19.

According to SBI, this suggests that private investment has picked up even as concerns have persisted over whether the private sector is spending enough to support the next phase of economic growth.

The report further noted that household savings had moderated, but remained at what it described as a comfortable level, indicating that investment requirements were being met without significant stress.

SBI's assessment comes amid a broader debate over the strength of India's investment cycle and whether private-sector capital expenditure is gaining enough momentum to complement public investment.

The Rs 84.7 lakh crore figure, however, refers to investment announcements, and not necessarily to projects already implemented or expenditure already incurred.

The report said the growing share of renewables and data centres in proposed investments reflects how India's capital formation is gradually shifting towards technology-linked and energy-transition sectors. (ANI)