According to CRISIL Ratings, total investments in India’s renewable energy, roads, and real estate sectors are projected to reach a massive ₹17.5 trillion across FY26 and FY27. This represents an annual growth rate of 15%, compared to ₹13.3 trillion invested during the previous two fiscal years.

Released at CRISIL’s 3rd Annual Infrastructure Summit, the report highlights how India’s infrastructure landscape is evolving with focused capital allocation, rising investor interest, and strong credit resilience, even amidst global and domestic challenges.

Strong Growth Across Three Core Infrastructure Sectors

Renewable Energy:

India’s renewable sector is rapidly transitioning to storage-backed and hybrid energy projects to ensure consistent, round-the-clock power supply. Of the 75 GW capacity expected to be added across FY26 and FY27, hybrid projects will account for 37%, up sharply from 14% over the previous two fiscals.

• Total Capex in Transmission: ₹1 trillion over FY26 and FY27 — double the previous years

• Key risk: Transmission delays due to land acquisition, approvals, or component shortages

Roads Sector:

The road infrastructure segment remains a high-impact growth driver for the Indian economy. However, future progress hinges on accelerated asset monetization and increased private capital participation.

• NHAI’s monetization share to grow to 18% in FY26–27, from 14% in the prior two years

• Total monetizable road assets: ₹3.5–₹4 trillion

• Key risk: Past challenges with Toll-Operate-Transfer (TOT) bundling — 35% remained unawarded

Real Estate:

India’s residential and commercial real estate markets continue to expand steadily. After recovering strongly post-pandemic, the residential sector is now entering a normalization phase, while commercial leasing demand remains on the rise.

• Residential revenue growth: 10–12% CAGR across FY26 and FY27

• Commercial leasing to grow 7–9% annually, crossing 50 million sq. ft. by FY27

• Key risk: Rising inventory levels due to excess launches; expected to rise to 3.1 years in FY26 from 2.7 in FY24

Infrastructure Investment Outlook Remains Resilient Despite Challenges

CRISIL cautions that each sector faces structural and external risks. These include:

• Transmission capacity delays in renewables

• Valuation mismatches or approval delays in road monetization

• Inventory buildup and rising debt among property developers

• Geopolitical risks that may affect capital inflows into infrastructure

Despite this, the overall credit profiles of developers in these sectors remain healthy.

According to CRISIL, ₹2.1 trillion in equity capital has already been deployed across these sectors over the last two years. This has helped companies deleverage and maintain strong cash flows.

• Debt service coverage ratio (DSCR) for toll roads is expected to remain healthy at 1.5–1.6x

• Total outside liabilities to tangible net worth for road developers is projected at 0.6–0.7x

  Source: Livemint