New investments slid 46% in Q3 as manufacturing, infra outlays shrank
The Hindu
Fresh investment plans in India nearly halved in Q3 2023, with manufacturing and infrastructure sectors witnessing significant declines.
Fresh investment plans almost halved between October and December 2023 from the previous quarter, with public capital expenditure projects tripping at a faster pace of almost 60%, while proposed private sector outlays fell 35%.
This marked the third successive quarter of sequential decline in new investment projects after they hit a record high in the fourth quarter (Q4) of 2022-23, data from investment tracking firm Projects Today show.
Proposed investments halved for all sectors barring electricity, with irrigation (down 75%) and manufacturing (61.5% lower) witnessing the sharpest drop.
Also Read | New investment slowed again in Q2 of FY24, drops by 13%
The decline in manufacturing investment plans came on the back of quarter-on-quarter drops of 77.6% and 2.3% in the first two quarters of 2023-24, respectively and was most pronounced in critical sectors such as automobiles (-63.8%), steel (-74.8%), and cement (-89%).
From around 30% of the ₹7.05-lakh crore of new investments announced in Q2 of this year, manufacturing projects accounted for just 21% or ₹80,000-odd crore of the ₹3.83-lakh crore investments planned in Q3. Overall investment plans dropped 45.7% quarter-on-quarter.
The below-normal monsoon which has dented rural demand recovery and the upcoming Lok Sabha election might have made private companies hold back their new capex plans for a while, Projects Today CEO Shashikant Hegde told The Hindu.
Rupee trading in narrow range as U.S. dollar strengthens, Brent oil rises amid Ukraine-Russia conflict, FIIs sell equities.
Billionaire Gautam Adani indicted in U.S. for fraud and bribery, facing charges of defrauding American investors.
Air India has signed an agreement with Bengaluru Airport City Limited (BACL), a subsidiary of Bangalore International Airport Limited (BIAL), to develop a built-to-suit facility for the AME program that will feature modern classrooms, well-equipped laboratories for practical training and a team of qualified trainers.
Zepto raises $350 million in largest domestic fundraise in India, backed by leading financial institutions and notable individuals.
Adani Enterprises Ltd stock dips on NSE and BSE after Kenyan project cancellations and U.S. court allegations.
HSBC Flash India PMI shows uptick in private sector activity, with rising cost pressures and increased prices for customers.
Rupee rises slightly against US dollar amid geopolitical pressures, foreign outflows, and domestic equities; Brent oil surges.
Sensex and Nifty rebound in early trade driven by value buying, bank stock rally, and positive global cues.
The pandemic-induced downturn marked a turning point for cab drivers in Bengaluru. According to Tanveer Pasha, president, Ola and Uber Drivers’ Association, the number of active cabs in the city has dropped from over 1 lakh before the pandemic to just around 30,000 today.
Amazon will likely face an EU investigation next year into whether it favours its own brand products, said sources.
White House addresses bribery charges against Indian billionaire Adani, expresses confidence in U.S.-India relationship.