In the fourth quarter of FY26, new project announcements for manufacturing facilities in India plummeted by 60%, amounting to ₹1.7 trillion (approximately $20.5 billion USD), according to the Centre for Monitoring Indian Economy. This marks a staggering 78% decline year-on-year, down from over ₹4 trillion in the previous quarter. The slowdown is attributed to global uncertainties, including ongoing conflicts in West Asia and concerns over trade agreements with the United States. As of September 2025, more than 25% of existing manufacturing capacity was unutilized, indicating a cautious approach from companies regarding new investments. The government, which has been a key driver of capital expenditure, is expected to reassess its investment plans due to potential revenue losses and fiscal constraints. Experts suggest that logistical challenges and rising costs may further impact earnings and investment decisions in the manufacturing sector, which is crucial for job creation in India.