India’s renewable energy, roads, and real estate sectors are poised to draw a combined investment of ₹17.5 lakh crore over the current and next financial year—marking a near 15% annual growth from the ₹13.3 lakh crore invested during the previous two fiscals, according to CRISIL Ratings.

In an official statement, CRISIL highlighted that strong investment momentum is expected across all three sectors despite changing business models and operational risks. “What remains constant across these three sectors is the strong investment growth. Over this fiscal and next, investments may rise at 15 per cent annually, reaching ₹17.5 lakh crore compared with ₹13.3 lakh crore in the preceding two fiscals,” said Krishnan Sitaraman, Chief Ratings Officer, CRISIL Ratings.

The renewable energy sector will see a significant leap in hybrid projects. Of the 75 GW capacity expected to be added over the current and next fiscal years, 37% will come from hybrids—a sharp rise from the 14% share over the past two years.

In the road sector, which has a pronounced multiplier effect on the economy, project awarding will be critical to sustaining momentum. For the National Highways Authority of India (NHAI) to return to its peak performance of ~6,000 km awarded and executed annually, increased private investment and accelerated asset monetisation are key. “We expect the share of monetisation in NHAI’s funding sources to grow to 18 per cent this fiscal and next, up from 14 per cent previously. A robust monetisable asset base worth ₹3.5-4 lakh crore lends confidence,” the statement noted.

The real estate sector, particularly the residential segment, is witnessing demand normalisation post-pandemic, with developer revenue projected to grow 10–12% over the next two years. Continued demand for premium housing will support realisation rates, while commercial real estate is expected to clock steady net leasing growth of 7–9% annually.

As India remains a cost-efficient hub for Global Capability Centres (GCCs), combined with robust domestic demand, net leasing demand is projected to surpass 50 million square feet annually by FY27.

Manish Gupta, Deputy Chief Ratings Officer, CRISIL Ratings, noted that healthy operational performance and cash flows over recent years have helped keep debt levels in check. “About ₹2.1 lakh crore of equity capital has been deployed in these three sectors over the past two fiscals, driven by strong investor participation, supporting the credit profiles of developers and projects,” he said.

For the renewables sector, while debt levels are expected to rise given high capex intensity, stable operating performance will likely maintain net debt-to-Ebitda at around seven times over the next two years.

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