Private sector manufacturing investments drive record new investments in India in 2022-23


India witnessed a record surge in new investments in the January-to-March quarter of 2022, with total fresh investments reaching ₹14.6 lakh crore ($196 billion), according to data from investment monitoring firm Projects Today. Private sector investments accounted for ₹10.5 lakh crore ($140 billion) of the total, marking an all-time high. The fourth-quarter surge in investments was driven by a significant uptick in manufacturing investments, which led to a total of ₹37 lakh crore ($496 billion) in new investment projects announced during the financial year 2022-23, a 92% increase compared to the previous year.

The data also revealed a notable shift in the nature of investments, with private-sector manufacturing investments surpassing public-sector-driven infrastructure-focused capital expenditures as the dominant source of capital formation. This trend is seen as positive for the Indian government, which has been urging the private sector to invest more to boost economic growth amid a slowing global economy. Manufacturing investments in the fourth quarter of 2022-23 were almost three times the average of the previous three quarters, totaling nearly ₹9.6 lakh crore ($128 billion), with the share of planned manufacturing outlays increasing from an average of 45% in the first three quarters to almost 66% in the fourth quarter. Overall, the share of private investments increased from an average of 65% in the first three quarters to 72% in the fourth quarter.

The manufacturing sector accounted for a significant share of total fresh investments, with its share increasing from 41.93% in 2021-22 to 53.66% in 2022-23. New project outlay in the manufacturing sector more than doubled from ₹8.08 lakh crore ($108 billion) in 2021-22 to over ₹19.85 lakh crore ($265 billion) in 2022-23, although the number of new manufacturing projects declined from 2,759 in 2021-22 to 1,912 in 2022-23.

In terms of government and private sector investments, Central and State government investment projects grew by 95% to ₹11.68 lakh crore ($156 billion) in 2022-23 from just under ₹6 lakh crore ($80 billion) in 2021-22. Private sector investments jumped by 90.7% to ₹25.32 lakh crore ($338 billion) in 2022-23 from ₹13.27 lakh crore ($177 billion) in the previous year. Foreign investments also grew at a faster rate, though on a smaller base, reaching ₹4.73 lakh crore ($63 billion) in 2022-23 compared to ₹2.17 lakh crore ($29 billion) in 2021-22.

Andhra Pradesh emerged as the top state for fresh investments in 2022-23, attracting 306 projects worth ₹7.65 lakh crore ($102 billion), including 57 mega projects with investments of ₹7.28 lakh crore ($97 billion). Gujarat, which topped the list of investment plans in 2021-22, slipped to a distant second in 2022-23 with 1,008 new projects worth ₹4.44 lakh crore ($59 billion). Maharashtra, which recorded the second-highest investment intent in 2021-22, slipped to fourth place in 2022-23 but secured the highest number of new projects across states at 1,639. Karnataka secured investment projects worth ₹4.33 lakh crore ($58 billion), surpassing Maharashtra in terms of investments. Other states that attracted significant investments in 2022-23 included Odisha, Uttar Pradesh, Rajasthan, Tamil Nadu, Telangana, and West Bengal.

Also Visit- Fox&Angel- Best Strategy Consulting Firm

Comments

Post a Comment

Popular posts from this blog

McDonald's Joins India's FDI Bandwagon with Rs 600 Crores

Image
The American fast-food juggernaut McDonald's has announced that it will spend up to Rs. 600 crores ($81 million) over the following three years in India's North and East. The investment is a part of the company's efforts to quicken its expansion and widen its presence in the nation. Robert Hunghanfoo, the managing director of McDonald's India (North and East), announced the investment. According to him, the money would be used to update the company's current restaurants, expand its restaurant network, and create new goods specifically for the Indian market. Connaught Plaza Restaurants, owned by Indian businessman Vikram Bakshi, and McDonald's Corporation have a 50:50 joint venture called McDonald's India. The company has operated in India for more than 20 years and runs more than 300 restaurants there. At a time when India is concentrating on luring foreign direct investment (FDI) to help economic growth, McDonald's investment announcement is timely. In...
Read more

Foreign Direct Investment (FDI) in India: A Comprehensive Guide

Image
Foreign Direct Investment In India Introduction to Foreign Direct Investment  Forеign dirеct invеstmеnt (FDI) is a typе of cross-bordеr invеstmеnt in which a rеsidеnt of onе country еstablishеs a long-tеrm intеrеst in form of a controlling ownеrship and has a considеrablе influеncе ovеr a rеsidеnt of anothеr еconomy.  Forеign dirеct invеstmеnt (FDI) is an еssеntial mеans for thе transfer of technology bеtwееn nations, It еncouragеs intеrnational tradе by providing accеss to othеr markеts, and it sеrvеs bе a powеrful еconomic growth tool.   A look at the world of growth  India has sееn significant growth in rеcеnt yеars, bеcoming thе 5th largеst еconomy in thе world today. This growth is еvidеnt in the country's stock markеt, which is now the 4th largest in the world. India's trajеctory is also prеdictеd to continuе on a positivе trajеctory, with projеctions suggеsting it will be thе third-largеst еconomy by 2030 and thе sеcond-largеst еconomy by 2050. This ...
Read more

Things to consider before investing in India in 2024 - Fox&Angel

Image
India's burgeoning economy and diverse market make it an attractive destination for global investors. However, before embarking on the investment journey in India, it's crucial to consider various factors to ensure a successful and strategic approach. In this blog, we explore the key considerations for investors eyeing opportunities in India, covering aspects of FDI, investment options , and the expertise Fox&Angel brings to the table. Understanding the Indian Investment Landscape: 1. Regulatory Environment: Navigating India's regulatory landscape is pivotal. Understanding foreign investment policies, compliance requirements, and legal nuances is essential for a seamless entry into the Indian market. 2. Market Research and Trends: In-depth market research is crucial to identify trends, assess demand, and understand consumer behavior. This insight aids in aligning your investment strategy with the needs and preferences of the Indian market. 3. Risk Assessment: Evaluat...
Read more