India’s investment pipeline has gained strong momentum in the first half of FY27. Companies announced projects worth Rs 30.38 lakh crore between April and September 2026.
This was 34.7 percent higher than Rs 22.56 lakh crore announced during the same period last year. The latest figures point to a sharp improvement in investment activity. India’s investment pipeline had remained largely stagnant at Rs 15.94 lakh crore in 2023 and Rs 15.49 lakh crore in 2024. It then rose to Rs 22.56 lakh crore in 2025 before climbing further in FY27.
The data comes from a Bank of Baroda research note based on data from the Centre for Monitoring Indian Economy (CMIE).
Indian private companies accounted for nearly 90 percent of private-sector investment intentions. Multinational companies contributed the remaining 10 percent.
Data Centres and Power Drive Investment Growth
The surge has been led by a few key sectors, with services emerging as the biggest contributor. Services-sector investment announcements reached Rs 11.92 lakh crore. This was more than double the Rs 5.88 lakh crore recorded in 2025.
Information technology accounted for nearly four-fifths of the services-sector total. Investment intentions in IT jumped to Rs 9.46 lakh crore from just Rs 70,000 crore a year earlier.
The Bank of Baroda report attributed much of this sharp rise to the growing push to build data centers. This marks a change from previous years, when transport, especially airline fleet expansion, was a major source of services investment.
Electricity was another major driver. Investment announcements in the sector almost doubled to Rs 9.15 lakh crore from Rs 4.94 lakh crore in 2025. The investments include both conventional and renewable power projects. The trend highlights the growing need for power infrastructure as India expands its digital and industrial capacity.
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Key Highlights:
- Investment announcements reached Rs 30.38 lakh crore in H1 FY27.
- IT investment intentions surged to Rs 9.46 lakh crore.
- Electricity-sector announcements nearly doubled to Rs 9.15 lakh crore.
- Indian private firms made around 90 percent of private-sector investment intentions.
Manufacturing Slows, While Bank Credit Picks Up
While services and electricity gained momentum, manufacturing investment intentions moderated. The sector recorded Rs 8.18 lakh crore in announcements, down from Rs 10.54 lakh crore a year earlier. Metals remained a major contributor at Rs 3.31 lakh crore. Machinery investment, meanwhile, doubled to Rs 2.08 lakh crore. The report said much of this manufacturing investment remained connected to infrastructure. Metals, machinery and chemicals benefited from continued government spending on infrastructure.
Consumer-focused industries saw much weaker investment intentions. Food and agro-based products recorded Rs 17,000 crore, while textiles stood at Rs 19,000 crore. Consumer goods attracted Rs 30,000 crore. The report suggested that surplus capacity and weak consumer demand could be limiting investment in these segments. At the same time, stronger bank credit growth provided another positive signal. Bank credit grew 18.1 percent as of September 15, 2026, compared with 10.4 percent during the same period last year.
Corporate bond issuances, however, declined to Rs 5.47 lakh crore in the first six months of FY27 from Rs 6.66 lakh crore a year earlier. This could indicate a shift in corporate financing toward banks. Overall, India’s investment pipeline is showing stronger momentum, led by data centers, power and infrastructure-linked projects. However, the uneven sectoral trend suggests that investment growth is still concentrated rather than broad-based.
