Indian conglomerates are likely to spend about $800 billion on growth over the next 10 years, almost triple of what they spent over the prior decade, a report showed on Monday.
"About 40 per cent of Indian conglomerates' spending over the coming decade will be on new businesses, such as green hydrogen, clean energy, aviation, semiconductors, electric vehicles (EVs) and data centres,” said Neel Gopalakrishnan, credit analyst at S&P Global Ratings.
The Adani Group, Tata, JSW group and others are prepping about $350 billion of investment in the new and emerging sectors over the next decade.
Many of the other conglomerates will focus more on their established businesses, with an emphasis on boosting scale and profitability.
The Birla, Mahindra, Hinduja, Hero, ITC, Bajaj and the Murugappa groups have a record of conservative growth, for example, according to the report by S&P Global Ratings.
Indian conglomerates will likely invest about $400 billion-$500 billion over the next 10 years in existing businesses, if they continue investing at a similar rate as that seen over the past two years.
The opportunity for growth for Indian conglomerates is huge. But the heavy spending on investment also presents risk--execution risk, and the risk of borrowing heavily on technology with unproven commercial payoff, such as green hydrogen, said Gopalakrishnan.
According to the report, as absolute debt levels rise, firms will need to continuously strengthen their core businesses to maintain their credit profiles.
Any underperformance during the investment phase would likely hit credit metrics, the report mentioned.
Political stability and policy continuity will bring rigour to reforms, fostering the development process towards becoming 'Viksit Bharat'.
According to Reserve Bank of India (RBI), the real GDP for FY25 is estimated to be 7.2 per cent, which is in line with global projections amid strong fundamentals, rising consumption and robust investment sentiment in the country.
India’s growth story remains intact as its fundamental drivers - consumption and investment demand - are gaining momentum
Govt likely to introduce new income tax bill on Feb 6
After the revision in tax slabs in the Union Budget 2025-26 to leave 'enough money in the hands' of taxpayers, the government is likely to unveil the much-anticipated draft of the new Income Tax Bill on February 6.
10 TN fishermen arrested by Sri Lankan Navy; mechanised boat seized
Ten fishermen from Rameswaram, Tamil Nadu, were arrested by the Sri Lankan Navy in the early hours of Monday for allegedly crossing the International Maritime Boundary Line (IMBL).
Maha Kumbh: Spiritual leaders, devotees celebrate Basant Panchami with Amrit Snan
On the auspicious occasion of Basant Panchami, devotees gathered at the Triveni Sangam during the ongoing Maha Kumbh 2025 in Prayagraj for the much-awaited Amrit Snan (holy bath), marking a significant spiritual milestone.
Delhi Assembly polls: Campaigning to end today; parties make final push
The high-voltage campaigning for the Delhi Assembly elections will come to an end at 5:00 p.m. on Monday, with all three major political parties, the ruling Aam Aadmi Party (AAP), the Bharatiya Janata Party (BJP) and the Congress, making their final efforts to woo voters.
Erode east bypoll: Campaign ends today, DMK confident of huge win
With the election campaign for the Erode East bypoll ending on Monday, the ruling DMK, which has taken over the seat from its coalition partner Congress, is confident of a massive victory.
Delhi’s air quality remains in ‘very poor’ category, IMD predicts cloudy weather
Delhi's air quality remained in the 'very poor' category, with the Air Quality Index (AQI) recorded at 313 on Monday at 6 am, according to the Central Pollution Control Board (CPCB).
Ayodhya Ram Mandir chief priest Acharya Satyendra Das hospitalised
The Chief priest of Ram temple in Ayodhya, Acharya Satyendra Das, has been hospitalised following a sudden deterioration in health, sources said on Sunday. It has been learned that his condition is serious as he has been experiencing difficulty in breathing.
Eight Maoists killed in Chhattisgarh’s Bijapur
Chhattisgarh Police on Sunday said that eight Maoists have been killed in an encounter with security forces in Chhattisgarh’s Bijapur district, were senior cadres carried a cumulative reward of Rs 16 lakh.