Corporate investment witnessed steady growth in FY2024-25, driven primarily by infrastructure-heavy sectors, according to a report released on Wednesday by the Bank of Baroda’s Economic Research Department.
The report revealed that gross fixed assets—including capital work in progress—rose to ₹28.50 trillion in FY25 from ₹26.49 trillion in FY24, marking an annual increase of 7.6%.
Refineries, Telecom & Steel Led Capital Formation
Refineries accounted for the largest share of fixed assets at 31%, followed by telecom services (8.6%), iron and steel products (5.9%), cement (5.4%), and power (4.8%).
These five sectors collectively comprised 56% of total fixed assets, underscoring the dominance of infrastructure sectors in corporate capital formation.
Public sector banks (PSBs), private sector banks (PVBs), chemicals, industrial gases, and non-ferrous metals together contributed 14.5% to total fixed assets.
Additionally, passenger cars, FMCG (household products), pharmaceuticals, IT software, and sponge iron accounted for another 10.4%.
Top 15 Industries Drove 81% Of Corporate Assets
According to the Bank of Baroda report, 15 industries accounted for nearly 81% of India’s corporate fixed assets in FY25.
The findings were based on balance sheet data from 1,393 companies across 122 industries that disclosed their FY25 results.
The report noted that several sectors, including cement, passenger cars, PVBs, PSBs, pharmaceuticals, steel/sponge iron, and refineries, surpassed the average fixed asset growth.
In cement and steel, corporate investment aligned with increased government capital expenditure to meet rising demand.
Refineries invested in capacity expansion, while pharmaceutical companies set up new facilities to meet both domestic and export demand.
Banks Invested In Technology And Branch Expansion
The report highlighted that banks heavily invested in technology and infrastructure by opening new branches, many of which were company-owned properties.
This trend reflected the sector’s modernisation and expansion efforts.
While infrastructure-led sectors drove investment in FY25, the report noted mixed performance among consumer-focused industries.
It projected stronger momentum in FY26, citing anticipated recovery in urban demand, falling inflation, and supportive government measures.
Also Read: India’s GDP Growth Set To Hit 7.2% In Q4 FY25 On Strong Agriculture And Tax Gains: Barclays
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