India’s Renewables, Roads, and Real Estate Set to Attract ₹17.5 Lakh Crore Investment by FY27: CRISIL
India is poised to attract a combined investment of ₹17.5 lakh crore in renewable energy, roads, and real estate by FY27, marking a 15% annual growth from the previous two fiscals, according to CRISIL Ratings.
Renewable Energy InvestmentReal Estate GrowthIndia InfrastructureCrisil RatingsHybrid EnergyReal EstateJun 09, 2025
According to the official press release, the agency sees strong growth across all three sectors, despite evolving business models and operational risks. “What remains constant across these three sectors is the strong investment growth. Over this fiscal and next, investments may rise at 15 per cent annually, reaching ₹17.5 lakh crore compared with ₹13.3 lakh crore in the preceding two fiscals,” said Krishan Sitaraman, chief ratings officer, CRISIL Ratings.
In the renewable energy sector, the addition of 75 GW of capacity in this and the next fiscal is expected, with hybrids accounting for 37 per cent of the capacity additions. This is a significant jump from the 14 per cent of capacity additions over the preceding two fiscals. The growth in hybrid energy capacity is driven by the increasing demand for storage solutions and the integration of multiple renewable sources.
In the roads sector, which has a substantial multiplier effect on the economy, a pick-up in project awarding will be crucial to revitalise the sector’s growth. The National Highways Authority of India (NHAI) aims to reach its previous highs of approximately 6,000 km per year of awards and execution. To achieve this, a substantial rise in private capital through accelerated asset monetisation will be essential. “We expect the share of monetisation in NHAI’s sources of funds to grow to 18 per cent in this fiscal and next, compared with 14 per cent in the preceding two fiscals. What lends confidence here is a monetisable asset base worth ₹3.5 lakh crore to ₹4 lakh crore,” added the release.
In the real estate sector, the residential segment is seeing demand normalise after the rapid recovery following the pandemic. Revenue growth for developers is expected to remain steady at 10-12 per cent this fiscal and next. With volume growth slated to rationalise, realisations will be supported by continuing demand for premium projects. Commercial real estate, too, will see steady net leasing growth of 7-9 per cent this fiscal and next. “As India continues to remain a cost-efficient market for GCCs and domestic sectors grow at a steady pace, annual net leasing demand is poised to cross 50 million square feet by fiscal 2027,” said CRISIL.
Manish Gupta, deputy chief ratings officer, CRISIL Ratings, added that robust operating performance over the past few fiscals and the consequent strong cash flows have kept debt levels under control. “About ₹2.1 lakh crore of equity capital has been deployed in these three sectors over the past two fiscals, driven by strong investor participation, supporting the credit profiles of developers and projects,” said Gupta.
CRISIL added that for renewables, while debt will grow given high capex intensity, resilient operating performance would result in stable net debt or Ebitda at about seven times over this fiscal and next.
Frequently Asked Questions
What is the expected investment in India's renewable energy, roads, and real estate sectors by FY27?
India is expected to attract a combined investment of ₹17.5 lakh crore in renewable energy, roads, and real estate by FY27.
How much of the new capacity in the renewable energy sector will be from hybrid sources?
37 per cent of the new capacity in the renewable energy sector will be from hybrid sources, a significant jump from the 14 per cent over the preceding two fiscals.
What is the expected growth in private capital for the roads sector through asset monetisation?
The share of monetisation in NHAI’s sources of funds is expected to grow to 18 per cent in this fiscal and next, compared with 14 per cent in the preceding two fiscals.
What is the expected revenue growth for real estate developers in the next fiscal?
Revenue growth for real estate developers is expected to remain steady at 10-12 per cent this fiscal and next.
How much equity capital has been deployed in these three sectors over the past two fiscals?
About ₹2.1 lakh crore of equity capital has been deployed in these three sectors over the past two fiscals, driven by strong investor participation.
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