India's new project announcements drop 13% to ₹44T in FY26
India saw a 13% drop in new project announcements in FY26, landing at ₹44 trillion, quite a turnaround from FY25's strong growth.
The main reason? Government-led capex announcements fell sharply after a big jump the year before, putting the brakes on overall investment.
West Asia war, tariffs stall capex
A mix of global tensions and tariff worries played a big part. The West Asia conflict that started in March 2026 made companies hit pause on new investments.
As Bank of Baroda's chief economist Madan Sabnavis put it, Tariff uncertainty through the first half and a war-led spike in the final quarter prompted companies to defer fresh capex announcements.
Some sectors like electricity and real estate were hit hard, but interestingly, services (excluding finance) actually grew by over 40%, showing where some optimism still remains.