India’s Investment Engines & Real Estate’s New Revenue Revolution: Trends to Watch in FY26


🚨 Top 5 States to Drive Half of India’s Capex in FY26

According to a recent report by Bank of Baroda, five Indian states are expected to contribute nearly 50% of the total capital outlay (capex) for FY26—underscoring their crucial role in India’s infrastructure growth and development.

Leading States by Capex in FY26:

  • Uttar Pradesh – 16.3%

  • Gujarat – 9.4%

  • Maharashtra – 8.3%

  • Madhya Pradesh – 8.1%

  • Karnataka – 6.7%

These states alone are set to drive the ₹10.2 lakh crore in projected capital outlay, rising from ₹8.7 lakh crore in FY25. Notably, this capex is earmarked for long-term fixed asset creation—such as roads, health facilities, and schools—underlining a state-led growth model in public investment.

On the flip side, Nagaland, Himachal Pradesh, and Sikkim are likely to see minimal capex contributions—just 0.4% collectively.

📈 Revenue Side: Who’s Earning the Most?

FY26 will also see total state receipts rising 10.6% to ₹69.4 lakh crore. Top states in revenue receipts include:

  • Uttar Pradesh – 13.3%

  • Maharashtra – 11.3%

  • Madhya Pradesh, Karnataka, Rajasthan – 5.9% each

Tamil Nadu had also ranked among the highest in FY25, showcasing consistency in fiscal strength.

Importantly, 12 states are expected to stay below median fiscal deficit limits, while 13 states may show revenue surplus—signalling fiscal discipline ahead of General Elections 2029.

🏙️ Outdoor Advertising: Real Estate’s New Growth Engine

Parallelly, a transformation is underway in the commercial real estate sector. With offices evolving into hybrid ecosystems, outdoor advertising is becoming a strategic revenue stream rather than just visual garnish.

Key Insights:

  • OOH (Out-of-Home) advertising now contributes 7-10% of income for commercial buildings—up to 12% in premium zones.

  • The Digital OOH Market in India, valued at $284M in 2024, is projected to touch $620M by 2030 (MarkNtel).

High-value advertising hotspots: Cyber Hub (Gurugram), Connaught Place (Delhi), Bandra Kurla Complex (Mumbai), MG Road (Bengaluru), and HiTech City (Hyderabad).

Emerging formats include:

  • Facades, rooftops, elevator wraps, digital lobby screens

  • Experiential pop-ups and brand activations in amenity zones

This strategic shift shows how urban footfall is monetized via smart city infrastructure—where buildings double as media platforms.

💡 Takeaway

India’s federal capex push and real estate innovation reveal a dual growth narrative:

  • On one hand, state-led infrastructure development is driving inclusive growth.

  • On the other, digital-savvy real estate monetisation is diversifying income in urban economies.

Together, they represent how India’s fiscal policy and market behavior are aligning to create multi-sector value in FY26 and beyond.


Location: Pune, Maharashtra, India

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