Infra investments to grow 45-50% over next 2 fiscals: Crisil Ratings

Investment in key infrastructure sectors in India is expected to grow sharply by 45-50% over the current and next fiscals, supported by a strong policy push and domestic demand, according to a report by Crisil Ratings.

The key infrastructure sectors include renewables, roads, real estate and new-age ones. These account for around half of India's total infrastructure investments and provide strong support to the country's GDP growth trajectory.

"Investment growth is likely to remain strong at 45-50% over the current and next fiscals. Consequently, investments in these sectors should rise to ₹23-24 lakh crore," Krishnan Sitaraman, chief ratings officer at Crisil Ratings, said on Tuesday. However, while largely insulated from the direct impact of the West Asia conflict, these sectors face indirect inflationary pressure if the conflict is prolonged. The report highlighted that sectors such as renewables, roads, real estate and emerging areas like data centres and green hydrogen together account for around half of India's total infrastructure investments. 

On the renewable energy front, capacity addition is expected to remain strong, with 50-55 GW annually over the current and next fiscals, backed by a robust project pipeline and policy support.