The value of new projects announced in the country declined 46% on year and 16% sequentially to Rs 5.2 lakh crore in the September quarter, according to data released by the Centre for Monitoring Indian Economy (CMIE). The Q2FY26 project value was also a five-quarter low, making the wait for a robust investment cycle longer, and its viability somewhat doubtful.

What offers a silver lining is a consistent rise in the share of the private sector in total projects announced in recent quarters – this share was 88.4% in Q2FY26, the highest level since Q3FY11. Besides, some progress was visible in the completion of announced projects, especially in the June quarter.

Sharp contraction in government projects

New private-sector projects contracted 24% on year to Rs 4.6 lakh crore in Q2FY26,

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