New Delhi, Jan. 2 -- The animal spirits seem to be stirring, but the scoreboard tells a mixed story. New project announcements rose nearly 16% sequentially in the October-December quarter (Q3 FY26), almost doubling the momentum seen in the previous three months. Yet, investment activity contracted year-on-year for the second straight quarter, weighed down by persistently weak government capital expenditure and modest private sector participation.

According to the Centre for Monitoring Indian Economy's (CMIE) project-tracking database, new projects worth Rs.10 trillion were announced in Q3 FY26, down from Rs.10.5 trillion in the same quarter a year ago. However, announcements saw a steady quarterly progression within FY26, climbing from R...