Ministry of Finance stated in a latest update that India’s investment ecosystem and external commercial borrowings (ECBs) have witnessed significant developments over the past few years. The recent report by the State Bank of India (SBI) has highlighted trends in investment announcements, private sector’s contribution, and role of ECBs in corporate financing. Investment activity in India continues to grow at a rapid pace, with significant contributions from the private sector. In 9MFY25 i.e., the nine months of FY25 (April-December 2024), total investment announcements stood at Rs 32.01 lakh crore. This marks a 39% increase from Rs 23 lakh crore in 9MFY24, reflecting a positive investment outlook. The private sector accounted for nearly 56% (FY24) and nearly 70% (9MFY25) of these announcements, signaling strong corporate confidence.
As of March 2024, the gross block of Indian corporates reached Rs 106.50 lakh crore, compared to ₹73.94 lakh crore in March 2020. Over the last five years, an average of more than Rs 8 lakh crore has been added annually to the corporate gross block. Additionally, capital work in progress stood at Rs 13.63 lakh crore in March 2024, indicating strong ongoing project development. Household Net Financial Savings (HNFS) in India improved to 5.3% of GDP in FY24 from 5.0% in FY23. Additionally, savings in physical assets increased from 12.9% of GDP in FY23 to 13.5% in FY24.