fresh investment – green shoots, not yet
TRANSCRIPT
64th Survey of Projects Investment in IndiaThe 64th Survey of Projects Investment in India conducted by ProjectsToday.com indicated a meagre increase of 0.8 percent in fresh projex announcement during the first half of the current fiscal (FY17).
The six-month period (April-Sept 2016) saw announcement of 5,272 new projects entailing a total investment of Rs 5,42,793 crore were announced during this period. The share of the private sector in fresh projex came down drastically from 51.9 percent in Sept 2015 to 19.9 percent in Sept 2016, indicating a very low appetite of the Indian private sector for fresh projex.
Private sector announced 1,053 new projects worth Rs 1,08,004 crore during the first half of FY17 as against 1,108 projects worth Rs 2,79,697 crore announced a year ago.
Survey ObservationsProjects Stalled
On the brighter side the Survey observed sharp fall in total projex stalled by private sector in Q2 (July-Sept 2016) of FY17. While in Q1 (Apr-June 2016), private companies stalled 218 projects worth Rs 52,508 crore, in Q2 they stalled 124 projects worth Rs 24,487 crore, indicating a fall of 53.4 percent. When compared with the same statistics of Q2 last year the fall was every steeper at 68.7 percent. Project Pipeline
According to the ProjectsToday survey, as of 30 Sept 2016, there were 58,699 projects worth Rs 1, 04,41,724 crore (Rs 104 trillion) in various stages of implementation across India. The total outstanding project investment grew at a healthy rate of 14.15 percent on a YoY basis.
Graphical Observations
Outlook
Prognosis
Normal monsoon after two years of drought and pay hike announced to government employees is expected to revive rural demand in the second half of FY17. Additionally, the recent reform measures undertaken by the NDA government, including passage of the GST bill, should entice private promoters to initiate fresh projex plans in 2017-18.
ProjectsToday Survey
ProjectsToday conducts quarterly Survey of projects investment in India since its inception in the year 2000. In the last week of Sept 2016, PT conducted its 64th Survey of projects investment to gauge the trends in projects investment in India.
The quarterly survey tries to figure out the overall trends in projects investment in India in the form of fresh investment announcements, projects stalled, projects completed and the total quantum of project investment in the pipeline.
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