India’s planned private sector investments touched Rs 99.7 lakh crore in September 2026, with the pipeline expanding 39% over a year. However, the sharp rise in project costs has not been matched by a similar increase in the number of projects, raising concerns about how widely the investment recovery is spread across the economy, according to a report by Union Bank of India (UBI) Research.The pipeline has grown 87% in two years, but the number of projects has increased by only 18%. This suggests that larger projects, rather than a broad increase in investment activity, have accounted for much of the growth.The report said, “The capex cycle is firmly aligned with Viksit Bharat 2047 aspirations,” while cautioning that the recovery was not yet broad-based.The scale of the increase is evident from the addition to announced project costs. These rose by Rs 46.4 lakh crore over the past two years, compared with just Rs 7 lakh crore added in the eight years up to March 2022. The overall pipeline is now 4.1 times its March 2014 level.
Two sectors account for most of the increase
IT-enabled services (ITES) and conventional power were the biggest contributors to the latest annual rise, together accounting for 87% of the net increase. ITES added Rs 16.8 lakh crore to the pipeline, while conventional power contributed Rs 7.6 lakh crore.The ITES pipeline alone jumped from Rs 2.2 lakh crore to Rs 18.9 lakh crore in a year, covering 160 projects.Looking at the outstanding pipeline, manufacturing and electricity together made up 74% of the total. Manufacturing projects accounted for Rs 41.3 lakh crore, while electricity projects stood at Rs 32.2 lakh crore.The services sector recorded the highest annual growth rate, surging 347% to Rs 21.9 lakh crore.
Five states dominate investment growth
Maharashtra continued to lead as a destination for announced private investments, with projects worth Rs 28.6 lakh crore. This represented around 29% of the total pipeline.The concentration was also visible in the distribution of fresh additions. Maharashtra, Andhra Pradesh, Telangana, Odisha and Uttar Pradesh together accounted for 94% of the pipeline’s annual increase.UBI Research flagged this concentration, along with the disparity between the growth in announced project costs and the number of projects, as risks for the next phase of the investment cycle.
Power investment gap raises execution concerns
The report also highlighted a substantial difference between planned investments in power generation and transmission. While planned generation investment stood at Rs 32 lakh crore, transmission investment amounted to just Rs 0.17 lakh crore.The pipeline creates significant opportunities for lenders, but the scale of announced investments alone may not be enough to assess the projects. UBI Research called for banks to examine execution prospects, financing requirements and power evacuation arrangements carefully before sanctioning loans.The report’s findings point to a growing pool of planned private investment, but also underline the need to assess whether projects can be executed and supported by the necessary infrastructure.
