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THE BACKBONE of India’s economic growth lies in its houses and building construction, which significantly contributes to the gross fixed capital formation. At 55%, this sector is the largest driver of investments, with households accounting for nearly half of this share. Historically, households led the charge during peak capex cycles, bolstered by robust private sector investment. The current cycle, however, shows a slower pace of growth in construction, with both private and household capital expenditure lagging. Notably, households’ share of gross fixed capital formation has declined from a high of 37% in FY12 to just 28% in FY23.
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September 2025
2025 is shaping up to be the year of electric car sales. In a first, India’s electric vehicles (EV) industry crossed the sales milestone of 100,000 units in FY25, fuelled by a slew of launches by major players, including Tata Motors, M&M, Ashok Leyland, JSW MG Motor, Hyundai, BMW, and Mercedes-Benz. The issue also looks at the challenges ahead for Tata Sons chairman N. Chandrasekaran in his third term, and India’s possible responses to U.S. president Donald Trump’s 50% tariff on Indian goods. Read these compelling stories in the latest issue of Fortune India.