Lighthouse Canton sees India entering second investment boom as capital formation accelerates to 11.9%
INDA•Investment themes and key beneficiaries
The thesis centered on AI infrastructure, renewable energy transition, and defense indigenization.
It cited L&T’s order book at INR 7.79 trillion, up 27% YoY.
India capital formation cycle turns higher
Lighthouse Canton flagged a turning point in India’s capital formation cycle, calling it the first capex supercycle since 2003-2008.
1QFY27 gross fixed capital formation rose 11.9% YoY; the capital formation-to-nominal GDP ratio increased to 34.3% from 31.4%.
Manufacturing growth and private project announcements
Manufacturing GVA growth accelerated to 9.2% from 8.3%, lifting manufacturing’s share after years of stagnation.
CMIE data showed new private project announcements of INR 13.1 trillion in 1QFY27, up 70% QoQ and YoY.
