Private investment to GDP in FY24 set to hit 8-Year high since FY16: SBI Report

New Delhi [India], January 23 (ANI): Private investment in India is set to reach its highest level in eight years as a percentage of GDP in FY24, according to a report by the State Bank of India (SBI).
The report highlighted a strong revival in private corporate investments, projecting private investment to GDP to approach 12.5 per cent in FY24.
It said, "Private corporation investment as percentage of GDP touched 11.9 per cent -- the highest since FY16...FY24 data to be released on end-Feb is likely to show private investment closer to 12.5 per cent of GDP in FY24 itself."
The report further noted that in FY23, private corporate investment as a share of GDP was 11.9 per cent, the highest since FY16. Government investments also reached a significant milestone, touching 4.1 per cent of GDP in FY23, the highest since FY12.
A notable surge in investment announcements by Indian companies has been observed in the first nine months of FY25 (April to December 2024). India Inc. announced investments worth over Rs 32 lakh crore during this period, a 39 per cent increase compared to Rs 23 lakh crore in the same period last year.
Additionally, the share of private sector participation in these announcements has risen to approximately 70 per cent.
The report also highlighted the growth in the gross block of Indian companies. Around 4,500 listed entities collectively increased their gross block to Rs 106.5 lakh crore as of March 2024, compared to Rs 73.94 lakh crore in March 2020. This reflects an addition of more than Rs 8 lakh crore annually over the last five years.
Furthermore, a robust pipeline of capital work in progress, amounting to Rs 13.63 lakh crore as of March 2024, indicates sustained investment momentum in the coming years.
The data highlights the growing confidence of private corporations in India's economic prospects, fueled by supportive government policies and infrastructure development initiatives. These developments are expected to bolster economic growth and job creation, laying a strong foundation for the future. (ANI)