A recent report by the Bank of Baroda’s Economic Research Department has revealed a significant increase in corporate investment in India, primarily driven by infrastructure-intensive sectors. The report analyzed data from 1,393 companies across 122 industries and found that gross fixed assets, including capital work in progress, rose to ₹28.50 trillion in FY25, representing a 7.6% annual growth from ₹26.49 trillion in FY24.
The top five sectors driving this growth were refineries, telecom services, iron and steel products, cement, and power, which together accounted for 56% of total fixed assets. These core infrastructure industries played a central role in capital formation, with refineries alone accounting for 31% of fixed assets. The next five industries, including public and private sector banks, chemicals, and non-ferrous metals, collectively accounted for another 14.5% of fixed assets.
The report highlights the pivotal role of these 15 industries in driving capital expenditure, representing nearly 81% of corporate fixed assets in FY25. The leading sectors in terms of investment were primarily in the infrastructure space and registered impressive growth rates. However, consumer-oriented industries showed mixed demand, particularly in urban areas, and are expected to regain traction in FY26 with the government’s measures and declining inflation.
The report also noted that sectors such as cement, passenger cars, private and public sector banks, pharmaceuticals, steel, and refineries outpaced the average growth in fixed assets. This growth was driven by government capex, expansion plans, and increasing demand for domestic and export markets. The banking sector invested heavily in technology and setting up new branches, while the pharmaceutical industry saw new capacities being set up to meet domestic and export demand.
Overall, the report provides a granular view of corporate India’s investment patterns, highlighting the importance of infrastructure-intensive sectors in driving growth and the potential for consumer-oriented industries to rebound in the coming year. The findings suggest that the government’s efforts to stimulate investment and consumption are likely to have a positive impact on the economy, with the possibility of increased demand and growth in various sectors.