India’s industrial growth story has taken a new turn in the past five years. A report released Thursday by PL Capital, citing , shows that the gross fixed assets (GFA) added between 2020‑2025 have jumped to their highest level since the 2005‑2010 period. The surge came in key sectors such as construction materials, electricity generation and consumer goods.
Sector‑by‑sector wins and losses
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Construction materials lead the pack. The sector’s GFA exploded by a staggering 2,802% in FY20‑25, after a sharp dip in the previous decade. The rebound was driven by massive public spending on roads, smart city projects, the Bharatmala highways network and the PM Awas Yojana housing scheme.
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Electricity generation also saw strong GFA growth, as the government pushed new renewable and conventional power plants.
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Consumer goods posted solid gains, reflecting growing domestic demand and increased consumer spending.
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Metals have been the story of the slowest growth. The sector slipped by 5% in FY15‑20 and fell 36% in FY20‑25, a hit from weak global prices, too much production capacity and high corporate leverage.
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By contrast, the chemical industry has kept adding capacity despite earlier setbacks. PL Capital says the sector is gearing up for a boom once demand rebounds.
Why the 2020‑2025 boom?
After the 2015‑2020 slump—when high input costs, new regulations like RERA and GST, demonetisation, and a crisis in non‑banking finance stifled housing and infrastructure—India’s government stepped up spending. Record capital expenditure on public infrastructure, plus a real‑estate revival, created a perfect storm for construction and related sectors.
The broader picture
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The construction sector’s growth went from a 233% jump in FY05‑10 to a 94% gain in FY10‑15, then a 95% decline in FY15‑20. Now it’s back with a massive 2,800% increase.
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Metals, after a 172% jump in FY05‑10 and 174% in FY10‑15, are now shrinking again.
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The machinery sector has been on a steady decline for 20 years, reinforcing the trend that manufacturing capacity is tightening.
What this means
India’s GFA data suggest that infrastructure and consumer spending are the new engines of growth. A healthy chemicals sector could add momentum once demand picks up. Meanwhile, the continued fall in metals warns investors to stay cautious.
For businesses and policy makers, the numbers underscore the importance of supportive infrastructure spending, stable regulatory frameworks, and balanced investment in key growth sectors.
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