Finally, private-sector capex has gone beyond green shoots and shown a clear assertive direction. A report recently revealed that new investment projects in Q2 of this financial year rose by 62 per cent, with private-sector plans accounting for more than 70 per cent. Foreign investors’ capex plans, too, jumped 130 per cent, while domestic private investments rose 32 per cent. Key sectors attracting investment included metals, petrochemicals, fertilisers, electronics, automobiles and digital infrastructure, with Maharashtra leading among the states followed by Andhra Pradesh. In recent years, private capex has stagnated at around Rs 4.9-6.6 trillion. The intended investment for FY26 is pegged at Rs 6.6 trillion and does not seem to be at the expected scale.After the Atal and Z-Morh tunnels, tunnel projects to the tune of Rs 3 trillion are in the works. The Z-Morh tunnel, also known as the Sonmarg Tunnel, inaugurated in January 2025, is a two-lane, bi-directional road tunnel in central Kashmir, and was built at a cost of over Rs 2,700 crore. In those ones under execution, the Zojila tunnel is 14.15-km long. But the total project, which includes the main tunnel and its approach roads, is 32.7-km long. Then, there is India’s largest twin-tunnel project linking Kozhikode and Wayanad in Kerala. Being built by Dilip Buildcon and funded by the Kerala Infrastructure Investment Fund Board, the project will be the country’s third-longest tunnel and the largest twin-tunnel initiative. India’s current installed hydro capacity of 54 gw accounts for an 11 per cent share in the energy mix. Going forward, hydro pumped storage plants (PSPs) are expected to lead the growth of the hydropower segment. These will further require tunnel projects. Among metro-rail projects, TBM remains the primary tunnelling technique, supported by the New Austrian Tunnelling Method and cut-and-cover methods. Tunnels are also being constructed for water supply and irrigation projects. Among metro-rail projects, the Mumbai Aqua Line (Metro Line 3) has a total length of 33.5 km, making it Mumbai's first fully underground metro. Other metro projects are weighing the tunnel route to navigate crowded cities. With TBMs being manufactured in India now, tunnel projects will gain ground. (The 4th Metro Rail Conference is scheduled on January 22, 2026, in Mumbai. Check page for more information.)Real estate is a cyclical business but when the city’s infrastructure goes through a drastic rehaul, the cycle goes through a rejig. Mumbai’s infrastructure has seen a major infusion. The Navi Mumbai International Airport, Coastal Road, Versova-Bandra Sea Link, Metro-Rail Network and the Bullet Train are all consolidating completion around 2025-2030, enhancing the appeal of the city. The Indian real-estate market saw a record-breaking first half of 2025, with total housing sales reaching Rs 3.6 trillion, driven primarily by the premium and luxury segments. Now, the redevelopment potential of Mumbai alone is estimated at Rs 1.3 trillion (Our 2nd Mumbai Redevelopment Summit is scheduled on December 17, 2025. Please refer page for more information.) Further, the BMC Commissioner in Mumbai can issue permission for buildings up to 180 m height without referring to the High-Rise Committee (Refer to our story for more information). And the new policy permits developers to get additional FSI, up to a maximum of five, for projects that fall within a 500-m radius of 10 stations on Metro Line 3 (Aqua Line), in addition to 35 per cent fungible FSI for rehabilitation projects. Obviously, cement and steel are direct beneficiaries. (Check out our 15th Cement Expo scheduled on November 12-13, 2025, at Yashobhoomi, Delhi.)The cumulative government capital expenditure for the fiscal year up to August 31, 2025, reached Rs 4,31,579 crore, marking 38.5 per cent of the total target. The Government cannot wait for the private sector to deliver to its potential and will need to step up. To attain the goal of a $ 5-trillion economy, investment in infrastructure needs to be made at an annual rate of 8-10 per cent for the next five years. For this, the required annual expenditure on infrastructure would be 7-8 per cent of GDP’ i.e., about $ 200 billion. We are currently woefully short.