Union Bank of India Research released a report on September 2026 showing the private‑sector investment pipeline had risen 39% year‑over‑year. The surge, however, masks a modest rise in project numbers—only 18% over two years, compared with an 87% increase in total cost.
The bulk of the growth came from IT‑enabled services and conventional power, which together added ₹24.4 lakh crore to the pipeline, accounting for 87% of the net rise. ITES alone leapt from ₹2.2 lakh crore to ₹18.9 lakh crore, covering 160 projects, while power contributed ₹7.6 lakh crore.
Geographically, Maharashtra remains the magnet, with projects worth ₹28.6 lakh crore, representing roughly 29% of the total. The five states—Maharashtra, Andhra Pradesh, Telangana, Odisha and Uttar Pradesh—together captured 94% of the annual increase, highlighting a sharp concentration.
UBI Research flagged the disparity between the steep climb in announced costs and the limited number of projects as a risk, warning that large‑scale investments may outpace execution capacity. It also noted a glaring gap in power infrastructure: planned generation investment of ₹32 lakh crore versus only ₹0.17 lakh crore for transmission, raising concerns about power evacuation.
The report urges banks to scrutinise execution prospects, financing needs and power evacuation arrangements before sanctioning loans, as the sheer size of the pipeline alone may not guarantee successful delivery. Lenders are expected to tighten underwriting standards in response to UBI’s findings.