Investments in renewables, roads, realty rise 38% to Rs 15 trillion
ECONOMY & POLICY

Investments in renewables, roads, realty rise 38% to Rs 15 trillion

Investments in India's critical infrastructure sectors including renewable energy, roads, and real estate are set to increase by 38% over fiscal years 2025 and 2026, reaching Rs 15 trillion, reports CRISIL Ratings. This surge is driven by the country's imperative to build sustainable infrastructure, bolstered by initiatives to expand green energy capacity, enhance physical connectivity through extensive road networks, and meet escalating demand in residential and commercial real estate sectors.

"The robust growth in these three sectors is underpinned by consistent policy support, which has galvanized investor confidence and fortified the credit profiles of private entities," remarked Krishnan Sitaraman, Senior Director & Chief Ratings Officer, CRISIL Ratings. He highlighted that the renewables sector is buoyed by the government's ambitious targets, leading to record-high auctions and a robust pipeline for new projects. Meanwhile, in roads, increased awarding activities and strengthened order books are expected to support significant highway construction, averaging 12,500 km annually over the next two fiscal years.

CRISIL emphasised the real estate sector's resilience, predicting steady growth in net leasing of commercial office space and sustained demand for residential properties. Policy interventions such as the Real Estate (Regulation and Development) Act, 2016 have boosted transparency and project completion timelines, enhancing investor confidence and attracting substantial equity investments totalling around Rs 2 trillion over the past two fiscal years.

While the outlook remains positive, CRISIL cautioned about potential risks such as delays in commissioning storage-linked renewable projects and the impact of new real estate launches on inventory levels. Despite these challenges, supportive policies and investor inflows are expected to fortify the creditworthiness of private sector participants, driving future growth in India's infrastructure landscape.

(Source: ET Energy)

Investments in India's critical infrastructure sectors including renewable energy, roads, and real estate are set to increase by 38% over fiscal years 2025 and 2026, reaching Rs 15 trillion, reports CRISIL Ratings. This surge is driven by the country's imperative to build sustainable infrastructure, bolstered by initiatives to expand green energy capacity, enhance physical connectivity through extensive road networks, and meet escalating demand in residential and commercial real estate sectors. The robust growth in these three sectors is underpinned by consistent policy support, which has galvanized investor confidence and fortified the credit profiles of private entities, remarked Krishnan Sitaraman, Senior Director & Chief Ratings Officer, CRISIL Ratings. He highlighted that the renewables sector is buoyed by the government's ambitious targets, leading to record-high auctions and a robust pipeline for new projects. Meanwhile, in roads, increased awarding activities and strengthened order books are expected to support significant highway construction, averaging 12,500 km annually over the next two fiscal years. CRISIL emphasised the real estate sector's resilience, predicting steady growth in net leasing of commercial office space and sustained demand for residential properties. Policy interventions such as the Real Estate (Regulation and Development) Act, 2016 have boosted transparency and project completion timelines, enhancing investor confidence and attracting substantial equity investments totalling around Rs 2 trillion over the past two fiscal years. While the outlook remains positive, CRISIL cautioned about potential risks such as delays in commissioning storage-linked renewable projects and the impact of new real estate launches on inventory levels. Despite these challenges, supportive policies and investor inflows are expected to fortify the creditworthiness of private sector participants, driving future growth in India's infrastructure landscape. (Source: ET Energy)

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