As many as seven of the 11 investment-related indicators witnessed an improvement in their year-on-year (YoY) performance in Q3 FY2026 vis-à-vis Q2. While new project announcements remained buoyant in Q3 FY2026, led by the private sector, project completions slowed sequentially to a 4-quarter low of Rs. 1.8 trillion in the quarter. As we look forward to the next financial year, the prospects for growth appear bright with the Government of India’s (GoI’s) capital expenditure budgeted to grow by 11.5% YoY to Rs. 12.2 trillion over the FY2026 revised estimate (RE), amid a 40% incremental uptick in the 50Y interest free capital assistance to states.

EXHIBIT: YoY performance of investment related indicators in Q3 vis-à-vis Q2 FY2026

~States’ capital outlay and stamp duty collections data is for 24 states excluding Arunachal Pradesh, Goa, Manipur, and Nagaland; YoY growth for infra credit has been taken as per outstanding data at end of a quarter; NL: Net lending; ^As per IIP data; Source: NSO; JPC; MoRTH; RBI; CGA; Ministry of Commerce and Industry, GoI; CEIC; ICRA Research