Corporate investment announcements in India surged 50% to ₹41 lakh crore in FY26, according to CII president Rajiv Memani. As reported by The Times of India, this growth was supported by a 20% rise in gross block of assets in the previous year. The investment momentum comes despite earlier concerns from Chief Economic Adviser V Anantha Nageswaran about India Inc's slow growth in investments, highlighting the sector's recovery trajectory.
According to CII president Memani, conglomerates are showing strong balance sheets and commitments with significant investments in energy, utilities, and other sectors. As reported by The Times of India, companies are focusing on supply chains, risk management, and maintaining healthy debt-equity ratios. However, uncertainty has led to cautious investment approaches, with large projects requiring extensive approvals, particularly in mining where timelines can extend to five to six years. The investment landscape shows momentum followed by slowdowns due to disruptions, followed by renewed growth.
Memani highlighted significant investment flows in sectors such as footwear, especially with foreign players looking at India as a manufacturing base. As reported by The Times of India, the industry body has identified 80-90 products including electronic components and compressors where India needs to reduce imports and build resilience. He attributed limited investment in these segments to global supply saturation, pricing challenges, insufficient domestic demand, and technology transfer barriers, requiring targeted policy support including PLI schemes and protection policies.
According to CII president Memani, some industry players are experiencing signs of slowdown with price pressure building up, partly due to weaker currency impact. As reported by The Times of India, he noted that some cost increases are being passed on in B2B transactions but retail prices have seen only marginal increases in most cases. Key risks include potential disruptions to logistics and energy markets, with higher crude prices emerging as a significant challenge if geopolitical tensions persist. Despite these challenges, Memani maintains an optimistic outlook, pegging GDP expansion at 6.5% for the year.
The CII has sought targeted policy support to navigate emerging pressures, including easing NPA recognition norms and addressing cost pressures linked to freight and logistics. As reported by The Times of India, Memani emphasized the need for efficient gas allocation and strengthening energy resilience over the longer term. He noted that broader uncertainty has affected financial markets, with IPO activity slowing, capital markets correcting, and currency volatility increasing, though no sharp visible impact has emerged yet.
