Indian Conglomerates Set to Invest $800 Billion in Next Decade
Key Ideas
- Indian conglomerates plan to invest around $800 billion in the next 10 years, with a focus on new businesses like green hydrogen and clean energy.
- Major players like Adani Group, Tata, and JSW Group are gearing up to invest $350 billion in emerging sectors, while others emphasize boosting their established businesses.
- The investment presents opportunities for growth, but also risks such as execution and heavy borrowing on technologies like green hydrogen.
- The growth outlook for India remains strong, with factors like political stability, policy continuity, and robust investment sentiment contributing to the positive economic projections.
Indian conglomerates are poised to invest approximately $800 billion in growth over the next decade, a significant increase compared to the past decade. The focus of this investment will be on various new businesses, including green hydrogen, clean energy, aviation, semiconductors, electric vehicles (EVs), and data centers. Notable conglomerates such as Adani Group, Tata, and JSW Group are gearing up to invest around $350 billion in emerging sectors. On the other hand, conglomerates like Birla, Mahindra, and Hero are expected to concentrate on enhancing the scale and profitability of their established businesses.
While the investment landscape offers ample growth opportunities, it also comes with risks, particularly related to execution and potential heavy borrowing for technologies like green hydrogen. According to the report by S&P Global Ratings, maintaining credit profiles will be essential as debt levels rise. The need for strengthening core businesses to navigate through risks is emphasized.
The report also highlights the importance of political stability and policy continuity in driving reforms and fostering growth. The Reserve Bank of India projects a real GDP growth of 7.2% for FY25, reflecting strong fundamentals, rising consumption, and robust investment sentiment in the country. The growth narrative of India remains promising, with a focus on consumption and investment demand driving the economic momentum.