Renewables, Roads, and Realty Sectors To See 38% Growth To Reach ₹15 Lakh Crore In 2 Years: Report

Renewables, Roads, and Realty Sectors To See 38% Growth To Reach ₹15 Lakh Crore In 2 Years: Report

Riding on supportive policy interventions, investment in India's key infrastructure sectors—renewable energy and roads—and real estate are likely to grow 38 percent in the fiscals 2025 and 2026, compared with the previous two fiscals, to Rs 15 lakh crore, a report showed on Tuesday.

IANSUpdated: Tuesday, June 18, 2024, 02:08 PM IST
article-image
Representative Image | Pixabay

Riding on supportive policy interventions, investment in India's key infrastructure sectors—renewable energy and roads—and real estate are likely to grow 38 percent in the fiscals 2025 and 2026, compared with the previous two fiscals, to Rs 15 lakh crore, a report showed on Tuesday.

The surge, according to CRISIL Ratings, will ride on India's need for the creation of sustainable infrastructure by adding more green power to the energy mix, improving physical connectivity through a denser road network, as well as rising demand for residential and commercial real estate. For renewables, the key growth driver is demand for a sustainable energy transition.

The government's target is driving up auctions, which has created a strong pipeline, the report mentioned. "The underlying demand drivers in these three sectors remain strong, with regular policy interventions fueling investor interest. This has also supported the healthy credit risk profiles of private players and strengthened their execution and funding capabilities," said Krishnan Sitaraman, Senior Director and Chief Ratings Officer, CRISIL Ratings.

India saw auctions of 35 GW in fiscal 2024, the highest-ever in a single fiscal, resulting in a strong pipeline of 75 GW. This will primarily drive the implementation of 50 GW of capacity over the next two fiscals, according to the report. When it comes to the road sector, the need for improved physical connectivity, which helps in efficiency gains for the economy, has driven healthy awarding over the past few fiscals, barring the last one.

Strengthened order books of road developers, at 2.5 times revenue, will support 11 percent growth in highway construction, which is seen at 12,500 km per year over the next two fiscals," the report noted. As for real estate, net leasing of commercial office space will see demand growth of 8–10 percent in this fiscal year and the next.

"Cumulatively, Rs 2 lakh crore of equity capital has been deployed in these sectors over the past two fiscals, driven by strong investor participation," said Manish Gupta, Senior Director and Deputy Chief Ratings Officer.

RECENT STORIES

Aditya Birla Lifestyle Brands Lists On Stock Exchanges Post Demerger

Aditya Birla Lifestyle Brands Lists On Stock Exchanges Post Demerger

Andhra Pradesh Sets ₹1 Lakh Crore Investment Target In Aerospace & Defence Sector

Andhra Pradesh Sets ₹1 Lakh Crore Investment Target In Aerospace & Defence Sector

Reliance Jio Rolls Out ₹3,599 Annual Plan with 912.5GB Data, 50GB Cloud Storage 

Reliance Jio Rolls Out ₹3,599 Annual Plan with 912.5GB Data, 50GB Cloud Storage 

Ola Electric Shares Hit All-Time Low Of ₹43.20 On BSE After Q4 Loss Doubles To ₹870 Crore

Ola Electric Shares Hit All-Time Low Of ₹43.20 On BSE After Q4 Loss Doubles To ₹870 Crore

Saudi Arabia & Russia Assure Oil Supply To India, Strait Of Hormuz Tensions Create Short-Term Worry

Saudi Arabia & Russia Assure Oil Supply To India, Strait Of Hormuz Tensions Create Short-Term Worry