Investments across key sectors—including renewables, roads, real estate and emerging segments—are projected to rise to Rs 23–24 lakh crore, broadly in line with growth seen in the past two years. While largely insulated from direct geopolitical impact, these sectors may face indirect cost pressures if the conflict persists.
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Renewable energy is expected to lead the growth, with annual capacity additions of 50–55 GW, backed by a strong pipeline and policy push. Data centre capacity is also set to expand 35–40% annually through FY28, driven by rising artificial intelligence and cloud adoption.
The road sector is likely to see a gradual recovery in project awarding, aided by improved budgetary support and faster approvals, while asset monetisation is expected to gain traction.
In real estate, residential demand is expected to remain steady at high levels, while commercial office demand may grow 6–7%, supported by flexible workspaces, BFSI and global capability centres.
However, challenges remain, including delays in renewable offtake, transmission gaps, slowdown in road awards and rising housing inventory, along with potential moderation in office demand due to global trends and AI-led disruption in the IT sector.“While largely insulated from direct impact, these sectors may face indirect inflationary pressures if the conflict prolongs. Nevertheless, investment growth is likely to remain strong,” said Krishnan Sitaraman, Chief Ratings Officer at Crisil Ratings.
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Crisil added that healthy balance sheets, stable cash flows and prudent leverage will support infrastructure players, even as newer sectors like green hydrogen and battery manufacturing may require continued policy support.