Page 18 - CII Artha Magazine 2022

It is important to note that, within
Ownership-wise Investment in Ongoing Projects (Rs lakh crore) State-wise Investment in Ongoing Projects FY22 (Rs lakh crore) manufacturing, investment under

90.0 25.0 23.7 the machinery segment rose by a
80.0 74.4 whopping 49.7 per cent in FY22, as Top Sectors Attracting Investment under Ongoing Projects (Rs lakh crore)
71.1 68.0 69.4 20.0
70.0 17.8 compared to the previous year.
15.8 80.0
60.0 15.0 14.4 13.4 Additionally, even though
50.0 10.0 11.3 10.7 8.9 8.6 construction & real estate sector 67.4
40.0 6.7 attracted one of the highest 60.0
30.0 5.0 investments in FY22, its proportion
20.0 declined as compared to that in the
0.0
10.0 previous years. 38.4
0.0 Gujarat Odisha Karnataka Haryana Rajasthan 40.0
2018-19 2019-20 2020-21 2021-22 Maharashtra Andhra Pradesh Tamil Nadu Uttar Pradesh Madhya Pradesh Investments in manufacturing
Central Government State Government Private sector sectors is essential to give a big 20.0 21.9 15.9 15.4
push to industrialization, which in
Note: Outgoing projects = Outstanding projects - Implementation stalled Note: Outgoing projects = Outstanding projects - Implementation stalled
Source: CMIE capex database & CII Research Source: CMIE capex database & CII Research turn can lead to creating more jobs,
enhancing wealth and reducing 0.0
poverty in the country. Transport services Electricity Construction & Real Chemicals & Metals & metal
estate chemical products products
Ownership-wise (central + state) stood at Rs State-wise manufacturing sector Going forward, with government
135.2 lakh crore in FY22, contributing a share of about also aiming to boost capital 2018-19 2019-20 2020-21 2021-22
A break- up of the data implying that even though A state level analysis shows 19.7 per cent in ongoing expenditure in the economy, Note: Outgoing projects = Outstanding projects - Implementation stalled
shows that private sector private investment has shown that Maharashtra, Gujarat, investments, Electricity at investment revival by both the Source: CMIE capex database & CII Research
investment (measured by faster signs of recovery, it is Odisha, Tamil Nadu, Andhra 18.3 per cent, Construction public and private sectors will play a
value of ongoing projects) in the government capex doing Pradesh, Uttar Pradesh and & real-estate at 10.5 per crucial role in supporting economic
the country increased by 7.2 the heavy lifting, with its share Karnataka emerged as the cent, while the Mining sector recovery in the current year.
per cent by the end of FY22 in total capex at 65 per cent. top-ranking states in terms of has a share of 4.3 per cent in
(as compared to 2.0 per cent attracting investment in FY22. the ongoing investments.
rise in FY21) to stand at Rs Central government accounts It is also important to note
74.4 lakh crore. for the largest share in capital that while investment in As the economic recovery
spending, indicating that the Gujarat rose by nearly picks up, consumption
On the other hand, total government is channelising double-digits, Andhra Pradesh, demand improves and
capital expenditure in resources towards capital Uttar Pradesh and Karnataka capacity utilization rises, new
absolute terms (measured by spending to sustain growth in attracted slightly lower investments in creating
value of ongoing projects) the economy. investment as compared to state-of-the-art
made by the government the previous year. These manufacturing infrastructure
states are known to have a will be triggered.
facilitative environment for
business as well as a record The key sectors which
Ownership-Wise Capital Expenditure in FY22 (% share)
for effective governance. attracted the highest
investment in FY22 include
However, states such as transport services,
Telangana, Madhya Pradesh, electricity, construction &
and Rajasthan are fast real estate, chemicals &
emerging as new competitors chemical products and metal
when it comes to attracting & metal products.
36% 40% higher investment.
The transport services here
include logistics, shipping
Sector-wise infrastructure and road
infrastructure.
24% A sector-wise analysis shows
that, out of the broad sectors, Further, the manufacturing
the services sector (other sector continues to attract
than financial services) high investment, with the
comprises of the largest share print at Rs 41.2 lakh crore in
in the overall ongoing FY22, marking an increase of
Central Government State Government Private sector
investments, at 40.9 per cent. 5.8 per cent over the
This is followed by the
Source: CMIE capex database & CII Research previous year.

18 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 19
QUARTERLY JOURNAL OF ECONOMICS
QUARTERLY JOURNAL OF ECONOMICS
MAY 2022 MAY 2022