According to a research report by Bank of Baroda Economic Research, gross fixed assets (GFA) grew 5.8% in FY26 to ₹46.7 lakh crore compared to 7.4% in FY25. The brokerage analyzed 2,383 listed companies and found that overall growth moderated due to tariff-driven uncertainty, though sectors tied to domestic demand and government capex showed strong capital formation. Nine sectors posted GFA growth above 10% in FY26, accounting for 10% of total GFA but growing 13.5% collectively.
Trading led sector performance with 33.3% growth, followed by Electricals at 30.1%. Infrastructure grew 19.7% and Capital Goods 17.5%, driven by front-ended government capex. Retailing expanded 17.8% as companies added physical stores, while Healthcare and Chemicals grew 10.1% and 10.5% respectively. Alcohol, Diamonds & Jewellery also crossed 11% growth. Credit growth tracked capex performance, with Capital Goods seeing 32.2% bank credit growth, Diamonds & Jewellery 41.4%, Healthcare 17.9% and Trading 16.2%.
Consumer Durables grew 8.5% and Logistics 8.5%, with durables building capacity ahead of tax cuts and income tax benefits in the Budget. Logistics and paper benefited from e-commerce spread. Realty recovered with 6.3% growth after a 5.6% decline in FY25, suggesting housing is back on track. However, sectors with less than 5% growth accounted for 39% of GFA, with Power growing just 1.6% as investment shifted to renewables and Telecom flat at 0.2%.
The 125 basis points repo rate cut from February 2025 to March 2026, combined with the Centre's capex push and consumer tax incentives, has created conditions for FY27 capex to widen. With tariff uncertainty easing, export-oriented sectors like textiles, agriculture and gems should gain confidence. Auto is expected to pick up as entry-level demand revives, and FMCG should follow higher disposable incomes. Logistics, durables and retailing look best placed to sustain double-digit asset growth as e-commerce and consumption scale up.
