Page 18 - CII Artha Magazine

Ongoing those for which Ownership-wise States Attracting High Ongoing Investments in Q2FY23 (Rs lakh crore) continued to expand in double poverty in the country.
The segments attracting
implementation has stalled
digits on an annual basis.
investments (which have not progressed A breakup of the data shows central and state) spending 30.0 Investments in the investments under
over a certain period). It is
manufacturing sector is
manufacturing include
moderated sequentially by
that private sector investment
important to analyse the (measured by value of 1.4 per cent to reach Rs 25.0 25.6 essential to give a big push to construction & real
trends in ongoing projects ongoing investments) 133.7 lakh crore in Q2Y23, 20.0 19.2 15.7 15.6 industrialization, which in turn estate, chemicals &
This section analyses the as well since they are a its share in total capex 15.0 14.2 12.2 11.3 can lead to creating more jobs, chemical products and
trend in ongoing projects good indicator of the increased marginally by 1.1 10.0 8.6 8.4 7.0
from the CMIE database. investment trajectory over per cent in Q2FY23 as remained high at 62 per 5.0 enhancing wealth and reducing metal & metal products.
Ongoing projects are basically a period of time. compared to the previous cent, implying that that even 0.0
outstanding projects less quarter to stand at Rs 81.5 though private investment Odisha
lakh crore during this period. has shown faster signs of Maharashtra Gujarat Tamil Nadu Karnataka Uttar Pradesh Haryana Rajasthan Telangana Top Sectors Attracting Ongoing Investments in Q2FY23 (Rs lakh crore)
recovery, it is the Andhra Pradesh
On the other hand, even government capex that is 100.0 85.5
Total Ongoing Investments (Rs lakh crore)
though government (both doing the heavy lifting. Source: CMIE capex database & CII Research 80.0 67.5
220.0 Note: Ongoing projects = Outstanding projects – implementation stalled 60.0 45.9
216.2 39.2
216.0 215.2 [Data extracted on 10th October 2022] 40.0 23.0 19.1
212.0 20.0 14.5
208.9 Trend in Overall Ongoing Investments (Rs lakh crore) 0.0
208.0 206.2
204.0 250.0 Sector-wise As the economy opened up
200.0 in the aftermath of the Services (other than financial) Transport services Manufacturing Electricity Construction & real estate Chemicals & chemical products Metals & metal products
196.0 68.9 80.7 81.5 A sector-wise analysis of the pandemic, the services
Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 150.0 ongoing investments show sector has been gaining
momentum. Despite the high
that among the sectors, the
Source: CMIE capex database & CII Research
Source: CMIE capex database & CII Research services (other than financial inflationary pressures, the Note: Ongoing projects = Outstanding projects – implementation stalled
134.8 135.6 133.7
Note: Ongoing projects = Outstanding projects – implementation stalled services) sector attracted the sector continues to show [Data extracted on 10th October 2022]
[Data extracted on 10th October 2022]
highest investment of Rs 85.5 expansion in various
lakh crore in Q2FY23. indicators viz air passenger
50.0 Services here includes retail traffic, hotel occupation, Going forward, government’s global supply chain but
Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 trading, transport and logistics tourism, e-commerce, etc. push to improve the share of also keep the momentum
Total ongoing investment government (both centre services and hotels & manufacturing in GDP to 25 of India’s march towards
(public + private) reported an and state), while the Government Private sector restaurants. Further, investments in the per cent, will not only establish becoming a developed
expansion of 3.1 per cent on investments by the private manufacturing sector have India as a key player in the economy.
an annual basis in Q2FY23 sector grew by a modest Source: CMIE capex database & CII Research
with the print reaching 1.1 per cent in the quarter. Note: Ongoing projects = Outstanding projects – implementation stalled
Rs 215.2 lakh crore during [Data extracted on 10th October 2022]
this period. The section below presents
a break-up of overall
However, the total ongoing investment analysis into
investments underwent a three categories, viz State-wise
moderation sequentially, with ownership-wise, state-wise
the print reporting a decline and sector-wise. A state level analysis shows Gujarat and Karnataka
in the capital spending by the that Maharashtra, Gujarat, attracted investments in
Andhra Pradesh, Odisha, Tamil double-digits annually, during
Nadu and Karnataka have the quarter. Both the states
emerged as top-ranking states have made a major
Ownership-wise capital expenditure in Q2FY23 (% share) in terms of attracting contribution towards India’s
investments in Q2FY23. growth story.

It is important to note that Some of the key projects
while these states attracted which Gujarat has pulled off

37.9 38.2 higher investments on an in Q2FY23 include shipping
annual basis, the level of infrastructure, drugs &
investments in Q2FY23 pharmaceuticals, processed
22.1 witnessed a sequential decline foods and semiconductor
for Maharashtra and Odisha manufacturing. Similarly,
as the state governments Karnataka invested in a lot
Central government State government Private sector calibrated their capital of projects related to
expenditure after the rise in transport logistics services,
Source: CMIE capex database & CII Research demand and capacity housing construction, natural
Note: Data extracted on 10th October 2022
utilization in the industry. gas trading and distribution.

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