BOB: Investment in projects worth a record 38.3 lakh crore for the second time, 69 share of private sector and 31% share of government

New Delhi| A total investment of Rs 38.3 lakh crore has been announced across the country in FY 2024-25. This is the second time in a decade that record projects have been announced since 2015-16 in value terms.

According to Bank of Baroda, out of the total announcements, 69 per cent i.e. projects worth Rs 25.2 lakh crore belong to the private sector and 31 per cent i.e. Rs 11.1 lakh crore belong to the government sector. Government sectors include central, state and local bodies. Domestic companies account for 62 per cent (22.6 lakh crore) of private sector investments. The remaining Rs 2.6 lakh crore belongs to foreign companies. Renewable energy tops the sectors where private companies have announced the maximum number of projects. The Centre’s emphasis is on road, refinery and shipping projects. At the same time, states are focusing on roads, education, transport and railways.

Just 19.4 lakh crore investment in the first three quarters
The highest number of projects in the last financial year were announced in January-March this year, which were worth Rs 18.9 lakh crore. In the first three quarters, projects worth only Rs 19.4 lakh crore had been announced. The Centre’s share of government investment stood at 7.4 lakh crore. State and local bodies stood at Rs 3.7 lakh crore. Odisha, Maharashtra and Andhra Pradesh have the highest share of 37 per cent in total projects worth 38.3 lakh crore. Karnataka, Bihar, Rajasthan, Gujarat and Chhattisgarh account for 33 per cent.

Five sectors accounted for 91 per cent of the Government’s total investment
Five sectors account for 91 per cent of the Government’s total investment. These include renewable electricity, road transport, refinery, conventional electricity and shipping. Electricity and shipping includes projects worth 6.8 lakh crore. Other sectors include chemicals, steel, railways, minerals, housing and health, among others.

67 per cent of the investment of State Governments is in the road transport sector. Renewable electricity accounts for 6.7 percent, railways for 4.2 percent and education for 2.6 percent. The greater emphasis of domestic private companies, that is, 29.6 per cent of investment is in renewable electricity. There is 15.8 per cent investment in chemicals, 11 per cent in steel-pipes and 7 per cent in the other electronics sector.