NEW DELHI: Defying expectations, India’s private sector announced fresh investment projects worth Rs 15.4 lakh core in April-June quarter (Q1), a 97% jump compared to corresponding quarter of the previous financial year, latest CMIE data showed. This improvement in confidence was led by fresh investments in the electricity and services sectors, particularly in the IT segment.Overall, the fresh capex (govt and private) in the economy touched a five-quarter high of Rs 17.8 lakh crore, even as fresh govt capex during Q1 FY27 declined 36% to Rs 2.4 lakh crore from Rs 3.9 lakh crore in Q1 FY26.CMIE data showed new investments in the electricity and services sector in Q1 FY27 more than doubled to Rs 7.6 lakh crore from Rs 3.6 lakh crore and Rs 7.8 lakh crore from Rs 3.8 lakh crore respectively. In the services sector, new investments in IT sector alone rose nearly four times to Rs 6.5 lakh crore from Rs 1.6 lakh crore.Bank of Baroda chief economist Madan Sabnavis said share of capital formation in Q1 rose to 34.3% in nominal terms from 31.4% last year, with private capex “being driven by data centres and power.”IDFC First Bank chief economist Gaura Sengupta said nascent signs of a pick-up in private capex are visible, with a “rise in bank lending to the infrastructure sector, capital goods imports and capital goods production.”Fresh investments in the manufacturing sector, however, fell 40% to Rs 2.2 lakh crore from Rs 3.8 lakh crore, led by decline in investments in the food products industry, textiles, chemicals and construction materials. Construction sector also saw decline in investments to Rs 15,000 crore from Rs 40,900 crore. Data also showed that project completions remained nearly similar (Rs 2.4 lakh crore) in Q1 as compared to the corresponding quarter of the previous year, while projects worth Rs 1 lakh crore were abandoned or shelved during Q1 FY27.
