Although the prolonged violence in West Asia may increase inflationary pressure on India's infrastructure industry, Crisil Ratings predicts that investment would still increase by 45–50% over the current and upcoming fiscal years due to robust domestic demand and regulatory support.
It is anticipated that investments in important areas, like as roads, real estate, renewable energy, and developing markets, will increase to Rs 23–24 lakh crore, roughly in line with the growth shown over the previous two years. These industries may experience indirect cost pressures if the conflict continues, although being mainly shielded from direct geopolitical influence.

With yearly capacity additions of 50–55 GW, renewable energy is predicted to drive the development thanks to a robust pipeline and governmental push. Through FY28, data center capacity is also expected to increase by 35–40% per year due to growing cloud and artificial intelligence use.
With better budgetary support and quicker approvals, the road industry is projected to experience a slow recovery in project awarding, and asset monetisation is anticipated to pick up steam.
While commercial office demand may increase by 6-7% due to flexible workplaces, BFSI, and global capability centers, residential demand in real estate is predicted to stay high.There are still issues, though, such as gearbox gaps, a slowdown in road awards, increased housing inventory, delays in renewable offtake, and possible deceleration in office demand due to global trends and AI-led disruption in the IT sector.
These industries may experience indirect inflationary pressures if the conflict continues, although being mainly shielded from direct effects. However, investment growth is probably going to continue to be robust, according to Krishnan Sitaraman, Chief Ratings Officer at Crisil Ratings.