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Renewables, roads, realty sectors to see 38 pc growth to reach Rs 15 lakh crore in 2 years: Report
TIWN June 19, 2024
Renewables, roads, realty sectors to see 38 pc growth to reach Rs 15 lakh crore in 2 years: Report

New Delhi, June 19 : Riding on supportive policy interventions, investment in India’s key infrastructure sectors — renewable energy and roads – and real estate are likely to grow 38 per cent 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 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 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 fuelling investor interest. This has also supported 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 implementation of 50 GW capacity over the next two fiscals, said the report.

When it comes to the roads 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.

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