New Delhi, Aug 25
India’s real investments grew at an average of 6.9 per cent annually between fiscals 2021 and 2025, outpacing the country’s gross domestic product (GDP) growth of 5.4 per cent in the same period, a new report said on Monday.
The report by Crisil, titled ‘The Road Ahead for Investments’, said India’s investment rate in fiscal 2025 was higher than the decadal average, supported mainly by government and household spending.
“India’s real investments grew 6.9 per cent per year (average real growth) over fiscals 2021-25, faster than the 5.4 per cent gross domestic product (GDP) growth,” the report said.
Investments, measured as gross fixed capital formation, stood stronger both in nominal and real terms compared to the average between fiscals 2016 and 2025.
Government and public sector undertakings (PSUs) drove much of this momentum, with their combined real investment growth averaging 13.9 per cent over fiscals 2022–24.
Households, the largest contributors, also saw robust investment activity, largely in real estate, with a growth rate of 13.4 per cent over the same period.