The RBI study takes into account three channels of funding: commitments made by banks and financial institutions, external commercial borrowings (ECBs) raised by companies and rights issues to finance capital expenditure.
The study, published in the RBI’s August Bulletin, sets out the overall investment intentions of ₹The private corporate sector generated $4.03 trillion in fiscal year 2024, up 56.6% from the previous fiscal year, i.e. fiscal year 2023.
The planned projects will obviously be developed in several phases over several years. Of the total cost of the projects planned for 2024, 54% are expected to be invested before the end of the year, 30% in 2025 and the remaining 16% in subsequent years.
In terms of size, 21.7% of the projects were ₹5,000 crores and above and 37% were from ₹1,000-5,000 crore rupees.
New projects accounted for 89% of the sanctions, while 8.6% were for modernization.
The infrastructure sector continued to attract the bulk of the 60% of total planned capital investment, led by energy, roads and bridges, followed by ports and airports.
Outside of infrastructure, cement attracted the largest share of funds (5.1%) and textiles 3.4%. Other capital expenditures in the manufacturing sector accounted for small amounts.
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