Economy
India’s Investments In Fourth Quarter Hit All-time High Of Rs 14.6 Lakh Crore
Representative image for manufacturing in India (Photo by Clayton Cardinalli on Unsplash)
India ended on a high note last year with a record-breaking January-to-March quarter of fresh investments totalling Rs 14.6 lakh crore.
The private sector led the way with all-time high outlays of Rs 10.5 lakh crore, reported The Hindu.
Manufacturing investments sparked a fourth-quarter (Q4) surge, propelling the total new investment projects announced in India to a record Rs 37 lakh crore in the 2022-23 fiscal year.
Projects Today, a firm that has kept track of investment project announcements since 2000, shared data with The Hindu revealing a 92 per cent surge in investments announced for 2022-23, exceeding the Rs 19.27 lakh crore for 2021-22.
Apart from the record numbers, Q4 2022-23 witnessed a shift in the nature of investments.
Private sector manufacturing investments took over capital formation from public sector-driven infrastructure-focused capex (capital expenditure) that had been supporting the metric of late.
The Indian government's plan for a Rs 10 lakh crore capital investment in 2023-24 may be helped by the recent trend of increased private sector investment, which they have been encouraging to boost economic growth in the face of a slowing global economy.
Factors such as high inflation, uneven consumption demand, and rising interest rates had previously contributed to industry reluctance to raise production capacities. However, this recent uptick in investment may provide a needed boost to the economy.
During Q4 of 2022-23, new manufacturing investments saw a significant increase compared to the previous three quarters, soaring to almost Rs 9.6 lakh crore, which is almost three times the average.
According to Shashikant Hegde, the chief executive officer of Projects Today, the positive momentum from new investments will carry on into FY2024, unless there is a significant rise in domestic inflation or external factors, such as crude oil prices, financial uncertainty, and geopolitical issues, weaken Indian investors' confidence.
Notably, Andhra Pradesh saw the most significant growth among states, moving from being outside the top 10 in 2021-22 to becoming the prime state for new investments in 2022-23.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest
