Low demand hurts Q3 private investments

• Total private sector projects dropped from 1,253 in Q2 to 1,061 in Q3.

• Private investors’ share in new investment projects dropped to 62.2% in Q3 from 66.2% in Q2.

• Foreign players’ new investments rose 44.2% sequentially to ₹1.02 lakh crore, largely due to a single ₹70,000 crore steel project announced by Arcelor Mittal Nippon.

• Slowdown in domestic private investments reflects apprehensions of India Inc. over rising input costs, high inflation, and geopolitical uncertainties.

• The outlook for 2025-2026 remains optimistic due to favourable economic conditions and policy interventions to stimulate private investment activity.

• New investments by States surpassed the Centre’s ₹2.05 lakh crore announcements in Q3, accounting for almost 20% of all new outlays.

• Mining, irrigation, pharma, construction, and automobile sectors clocked deep contractions in fresh outlays relative to Q2.

• Infrastructure investments were only fractionally higher by 0.8% at ₹4.25 lakh crore, but new electricity projects grew a sharper 21.9% to ₹4.5 lakh crore to account for the largest share of 39.3% in new investments through Q3.

• Rajasthan emerged as a surprise leader, with fresh project outlays in the State rising almost three times over Q2