Private industrial investments set to bounce back, says Crisil

‘New cycle to depend on implementation of govt. policy’

India’s private industrial investment cycle is poised to bounce back, ratings agency Crisil said in a research note on Monday, citing a rise beyond pre-pandemic levels in Industrial Entrepreneur Memorandum (IEM) filings with the government, the pace of environmental approvals, and the surge in foreign direct investments.

The Production Linked Incentive (PLI) schemes for 13 sectors and the surge in commodity prices will influence fresh private investments, aided by accommodative monetary policies, lower interest rates, rising merchandise exports and the supply chain diversification underway globally, Crisil projected. The macro and micro triggers for recovering from the collapse in private investments last year include flush global liquidity and healthier corporate balance sheets, it noted.