Driven By Investments In Manufacturing, Private Sector Capex In India Jumps By Over 145% In FY 2022

Driven by new investments in manufacturing, capex by private sector in India saw a 145-150% increase in FY22, compared to FY21/FY20, according to a research report published by Goldman Sachs.

While the increase was helped by mega project announcements (especially in the Steel sector), the overall number of projects announced across also saw a sharp increase by 80%-140% in FY22, compared to the previous two fiscals.

Contract awarding witnessed an overall increase of 55% year-on-year in FY22 with manufacturing sector recording an increase of 135% year on year.

New tenders also saw an increase compared to FY20/21. However, compared to FY18/19 the overall tendering activity (which is primarily for Government orders) has been flattish, Goldman Sachs report noted

The flattish trend in tendering is seen as a pointer to lower levels of activity in the next few months from an award perspective.