Mumbai (Maharashtra) [India], June 7 (ANI): Private investment announcements rose sharply to Rs 56 lakh crore in FY26 from Rs 37 lakh crore in the previous year, indicating that investment momentum in the economy is gathering pace despite concerns over weak private sector capital expenditure, according to an SBI Research report.

In its latest Ecowrap report, SBI Research said, 'Private investment announcements in FY26 is Rs 56 lakh crore from Rs 37 lakh crore in previous year.'

The report noted that overall investment announcements in the economy have risen significantly over the years, reflecting increasing confidence among businesses.

'The total investment announcements shows an increasing trend through the period from Rs 17 lakh crore in FY19 to Rs 80 lakh crore in FY26,' SBI Research said.

According to the report, manufacturing remained the largest contributor to fresh investment proposals during FY26.

'The manufacturing sector contributes around 28.9%, followed by power sector (28.7%) and building infrastructure (23.1%) in total new investment announcements of FY26,' it said.

SBI Research argued that the latest GDP data also point to strengthening investment activity in the economy.

'It's now an opportune time to understand the trends in private investment as the official GDP data shows investment momentum has gained momentum in FY26, with particularly a large uptick in Q4,' the report said.

The report highlighted that gross fixed capital formation, a key measure of investment in the economy, grew 10.8 per cent in the fourth quarter of FY26, reflecting strong investment activity.

Apart from new project announcements, SBI Research said the expansion of corporate assets also suggests sustained investment by India Inc.

'Apart from new investment announcement, another important data point is addition in gross block,' the report said.

It added that the gross block of more than 5,000 listed companies increased substantially over the last four years.

'Gross block of Indian Inc., represented by around 5000+ listed entities, is estimated to have increased from Rs 87 lakh crore as of March 2022 to Rs 145 lakh crore as of March'2026,' the report said.

SBI Research further noted that companies have consistently expanded their productive assets over the past five years.

'What is pertinent to mention is on an average Indian Inc have added more than Rs 13 lakh crore of gross block yearly in last five years,' it said.

The report comes at a time when private sector capital expenditure has remained a key focus area for economists and policymakers assessing the durability of India's growth momentum.

According to SBI Research, the rise in investment announcements and asset creation suggests that private investment activity is strengthening and becoming a more important driver of economic growth. (ANI)