Rajasthan has emerged as the top state in attracting fresh project investments during Q3FY25, surpassing industrial giants like Maharashtra and Gujarat, according to data sourced from Projects Today, a firm tracking fresh and ongoing project investments in India.
Rajasthan secured fresh project investments worth Rs 2,24,979 crore across 363 projects during Q3FY25, accounting for 19% of the country’s total investments of Rs 11.46-lakh crore in the quarter.
The spike in investments is due to significant contributions from the power and roadways sector projects during the period.
The state attracted 67 new power projects, including solar, wind, and hydel power, with investments totaling Rs 1,33,606.5 crore. In addition, it secured 83 road infrastructure projects worth Rs 53,207.96 crore and 98 power distribution projects valued at Rs 25,185.36 crore, together making up 94% of the state’s total new investments in Q3FY25. Rajasthan had earlier signed MoUs worth Rs 35 lakh crore during the “Rising Rajasthan” investor summit, with the Adani Group alone pledging Rs 7.5 lakh crore for renewable energy and green projects over the next five years.
Maharashtra, which topped the rankings in Q2FY25 with Rs 2,68,329.79 crore across 513 projects, slipped to second position in Q3, despite its number of projects increasing to 592.
The state attracted Rs 1,79,495.36 crore of fresh investments in Q3FY25, representing 16% of the total investments. The slip in rank was largely due to the month-long state election process in November 2024.
Gujarat fell to third position in Q3FY25 from second in Q2, with investments declining to Rs 1,34,440.25 crore from Rs 1,49,357.74 crore in the previous quarter. Andhra Pradesh, on the other hand, saw its investments more than double to Rs 92,907.15 crore, pushing its ranking to fourth from ninth in Q2. Karnataka slipped to fifth position with Rs 89,289.54 crore in investments, compared to Rs 1,18,154.76 crore in Q2FY25.
Haryana entered the top ten rankings in Q3FY25, securing the tenth spot with Rs 25,794.03 crore across 80 projects, displacing Tamil Nadu, which fell out of the top ten. Fresh investments in Tamil Nadu dropped to Rs 16,225.68 crore in Q3 from Rs 46,119.25 crore in Q2, a decline to one-third of the previous quarter’s level.
The overall fresh investments in the Indian economy grew by 9.9% in Q3FY25 to Rs 11.46-lakh crore, compared to Rs 10.43-lakh crore in the previous quarter. Central and State government investments led the growth, increasing by 23% quarter-on-quarter to Rs 4.33-lakh crore, while private investments saw a subdued 3% growth to Rs 7.13-lakh crore in the quarter.
“The slowdown in private investments during Q3FY25 reflects the apprehensions of India Inc. over rising input costs, driven by high inflation and ongoing geopolitical uncertainties,” Shashikant Hegde, CEO and Director of Projects Today, said.