Page 17 - CII Artha Magazine 2022

Domestic Trends

Investment 20.0 Overall New Projects Added Annually (Rs lakh crore) Sector Top Sectors Attracting Investment

Under the PLI Scheme
18.0
Outstanding project
16.9

investment (Rs crore)
16.0
14.5
Trends 12.0 8.6 Electronics 4,494
White goods
4,199
(air conditioners
8.0
& refrigerators)
4.0
Transport Equipment
2,300
0.0 Drugs & Pharma 4,015
2018-19 2019-20 2020-21 2021-22
Textiles 1,580
Source: CMIE capex database & CII Research
Source: CMIE capex database & CII Research
Note: Data extracted on 27th April, 2022
I nvestment plays a vital role New projects worth Rs 5.13 NEW INVESTMENTS The rise in investment in the Ongoing aftermath of Covid-19 and
in the economic growth of
lakh crore were introduced
any country. It has a multiplier during the quarter, taking the UNDER INDUSTRIAL manufacturing sector could sustain growth and
be attributed to the
development. Total ongoing
effect which not only helps total print to Rs 14.45 lakh SECTOR WITNESS A Production Linked Incentive Projects investment (government +
improve productivity but also crore in FY22. This marked a REBOUND (PLI) scheme announced by private sector) in India
enhances scale and 68.9 per cent increase during the government to boost reached Rs 209.6 lakh crore
competitiveness of an the year, as economic activity India’s manufacturing This section analyses the by the end of FY22, marking
economy. Recognising its continued to recover. A sharp rebound in new competitiveness, encourage trend in ongoing projects from a 1.6 per cent increase from
significance, the government However, the level is still investments was witnessed scaling up and create gainful the CMIE database. Ongoing FY21 and a 7.6 per cent
of India has focussed on below the pre-pandemic level. across industries. The employment. Further, the PLI projects are basically increase from FY20.
reinvigorating capital manufacturing sector scheme also attracted global outstanding projects less
expenditure and energising Both public and private continued to attract higher companies looking for a those for which In the section below, we
public investment through sector investments witnessed investment, with the print in China +1 manufacturing implementation has stalled break-down the overall
various channels like National a rebound during FY22. While FY22 recording 89.2 per cent strategy and shifting part of (which have not progressed investment analysis into three
Infrastructure Pipeline (NIP), private sector investment more investments than in the their manufacturing to India. over a certain period). It is categories, viz ownership-wise,
National Monetization more than doubled in FY22, previous year. important to analyse the state-wise and sector-wise.
Pipeline (NMP) and the Gati as per the CMIE data, public As per the CMIE data, the trends in ongoing projects as
Shakti plan. investment grew by 15.5 per Among the key sectors, total value of outstanding well since they tell us about
cent in FY22. The Union Electricity, Metals & Metal projects (announced or the investment trajectory over TOTAL ONGOING
This section analyses, in detail, budget of 2022, with its focus Products, Transport Services, under implementation) a period. INVESTMENT
the recent trends in on government capital Chemicals & Chemical under the PLI scheme stands (GOVERNMENT +
investment, based on the expenditure, set the trend for Products and Machinery were at Rs 22,460 crore (as on Both the public and private PRIVATE SECTOR) IN
CMIE Capex Database, which crowding in private capex, the other sectors which 27 April, 2022). As of date, sectors have been making INDIA REACHED RS
th
would help to assess the which is clearly visible attracted higher investments electronics sector has the investments in multiple areas. 209.6 LAKH CRORE
impact of the recent through these figures. in FY22. highest outstanding project Their spending increased during BY THE END OF FY22
initiatives taken by the investment, followed by the the pandemic year to help
government to facilitate white goods sector. economy recover from the
investment revival. Trends in New Project Announcements (Rs lakh crore)
8.0
NEW PROJECT Top Sectors Attracting Investment in FY22 (Rs lakh crore) Trend in Overall Investment in Ongoing Projects (Rs lakh crore)
ANNOUNCEMENTS 6.0 8.0 215.0
ACCELERATE TO A 4.3 6.0 6.1 4.9 210.0 209.6
RECORD HIGH IN 4.0 4.0 206.4
Q4FY22 2.9 2.0 2.6 1.7 1.4 1.1 205.0

0.0 200.0 199.2
2.0
The levers for revival in 3.4 products products 195.0 194.8
capital expenditure seem to 2.2 Manufacturing Electricity Metals & metal Machinery
be falling in place as the 0.0 Transport services Chemical & cemical 190.0
pandemic wanes. The new Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22
investment jumped 185.0 2018-19 2019-20 2020-21 2021-22
considerably in the recently Government Private sector 2018-19 2019-20 2020-21 2021-22
concluded March quarter. Source: CMIE capex database & CII Research Source: CMIE capex database & CII Research Source: CMIE capex database & CII Research

16 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 17
QUARTERLY JOURNAL OF ECONOMICS
QUARTERLY JOURNAL OF ECONOMICS
MAY 2022 MAY 2022