New Delhi: India's announced private capital expenditure pipeline has increased 39 per cent year-on-year to Rs 99.7 lakh crore in September 2026, led by a surge in IT-enabled services and conventional power projects, although the growing concentration of investments in a few sectors and states poses risks to the next phase of the investment cycle, according to a report by Union Bank of India (UBI) Research.
The report said the pipeline had expanded 87 per cent over two years, indicating a sharp increase in planned corporate investments. However, the number of projects rose only 18 per cent during the same period, suggesting that the increase was driven largely by larger projects rather than a broad-based rise in investment activity.
"The capex cycle is firmly aligned with Viksit Bharat 2047 aspirations," the report said, while noting that the recovery was not yet broad-based.
The pipeline has grown 4.1 times from its March 2014 level. Announced project costs increased by Rs 46.4 lakh crore over the past two years, compared with an addition of Rs 7 lakh crore in the eight years to March 2022.
IT-enabled services (ITES) and conventional power accounted for 87 per cent of the latest year's net increase, adding Rs 16.8 lakh crore and Rs 7.6 lakh crore, respectively. The ITES pipeline expanded from Rs 2.2 lakh crore to Rs 18.9 lakh crore in a year across 160 projects.
Manufacturing and electricity together accounted for 74 per cent of the outstanding pipeline, at Rs 41.3 lakh crore and Rs 32.2 lakh crore, respectively. The services sector recorded the fastest annual growth of 347 per cent, reaching Rs 21.9 lakh crore.
Maharashtra remained the largest destination for announced investments, accounting for Rs 28.6 lakh crore, or around 29 per cent of the total. Maharashtra, Andhra Pradesh, Telangana, Odisha and Uttar Pradesh together contributed 94 per cent of the pipeline's annual increase.
UBI Research flagged concentration and execution risks, noting that announced project costs had risen 87 per cent over two years while project numbers increased only 18 per cent. It also highlighted a gap between planned power generation investment of Rs 32 lakh crore and transmission investment of just Rs 0.17 lakh crore.
The report said the pipeline offered significant lending opportunities but called for careful assessment of project execution, financing requirements and power evacuation arrangements before loans are sanctioned.