Investment In Key Infra Sectors Seen Growing 4550% To Rs 2324 Lakh Crore: Crisil Ratings

(MENAFN- KNN India) New Delhi, Apr 25 (KNN) India's infrastructure sector is expected to maintain strong growth momentum despite geopolitical tensions in West Asia and broader global uncertainties, supporting the country's long-term development vision, Crisil Ratings said in a report.

The report highlights that infrastructure expansion is no longer limited to traditional sectors such as roads and renewable energy, but is increasingly supported by emerging areas like data centres, smart meters, green hydrogen and battery manufacturing.

This diversified growth is also expected to boost real estate demand, including steady residential sales and healthy absorption of commercial office space.

Investment Outlook

Krishnan Sitaraman, Chief Ratings Officer, Crisil Ratings, said,“The key infrastructure sectors-renewables, roads, real estate and the new-age ones-account for around half of India's total infrastructure investments and provide strong support to India's GDP growth trajectory.”

“Investment growth is likely to remain strong at 45-50 per cent over the current and next fiscals-akin to the growth seen in the preceding two fiscals. Consequently, investments in these sectors should rise to ~Rs 23-24 lakh crore, benefiting from strong government policy support and domestic demand,” Sitaraman added.

Sectoral Trends

The ratings agency highlighted that renewable energy remains a central pillar, with annual capacity additions expected at 50–55 GW over the next two fiscals, supported by policy initiatives and rising adoption of rooftop solar under schemes such as the PM Surya Ghar Yojana.

Data centre capacity is also projected to grow at 35–40 per cent annually through fiscal 2028, driven by increasing adoption of artificial intelligence and cloud services.

In the road sector, project awarding is expected to gradually recover after a slowdown, aided by improved budgetary support and streamlined approvals. Asset monetisation by the National Highways Authority of India (NHAI) is likely to accelerate, with Rs 70,000–80,000 crore worth of assets expected to be monetised, the report noted.

The real estate sector presents a mixed outlook. Residential demand is expected to remain stable on a high base, while commercial office leasing is projected to grow 6–7 per cent, supported by demand from flexible workspaces, BFSI firms and global capability centres.

Key Challenges

The report also flags several risks across sectors. Renewable energy projects face delays due to limited transmission capacity and pending offtake arrangements. Road developers may see slower order inflows if project awarding remains subdued.

In real estate, rising inventory levels and high property prices could affect residential demand, while commercial leasing may be impacted by global economic slowdown and reduced demand from the IT sector.

New-age sectors also face challenges, including pricing pressure in data centres, execution issues in smart meter deployment, and policy and competition risks in green hydrogen and battery manufacturing.

Credit Outlook Remains Stable

Manish Gupta, Deputy Chief Ratings Officer, Crisil Ratings, said,“Despite challenges, most of the players in the established sectors are well-positioned to overcome them, given their strong track records and execution capabilities. Their healthy credit profiles, on the back of stable cash flows, strong operating performance and prudent leveraging, provide support.”

“Around 15-20 per cent of investments in these sectors will be funded through equity. New-age sectors with mature business models will benefit from easier access to capital, while nascent ones may require higher upfront equity investments,” Gupta added.

The report concludes that timely project execution and continued financial discipline will be critical to sustaining growth amid evolving global risks.

(KNN Bureau)

MENAFN25042026000155011030ID1111031389