Page 18 - CII Artha Magazine

Ongoing over a certain period). It is Ownership- On the other hand, even

Top sectors attracting private investment in FY23 (Rs lakh crore) SERVICES (OTHER important to analyze the though ongoing investments
16.0 Investments since they are a good indicator wise made by the government
trends in ongoing projects
12.1 THAN FINANCIAL)
12.0 declined marginally by 1.6 per
8.2 7.2 ATTRACTED of the investment trajectory cent to Rs 140.2 lakh crore,
8.0 6.9 5.2 INVESTMENTS FROM This section analyses the over a period of time. A break-up of data shows its share in the total ongoing
4.0 2.3 trend in ongoing projects from that private sector investments remained high at
1.0 GOVERNMENT IN the CMIE database. Ongoing Total ongoing investment investment, measured by the around 58 per cent, implying
0.0 FY23 projects are basically (public + private) reported an value of ongoing investments, that the heavy lifting in the
Manufacturing Services (other than financial) Chemicals & chemical products Transport services Electricity Machinery Information technology As per CII’s analysis from the outstanding projects less expansion of 6.7 per cent in grew by 21.1 per cent in FY23 economy is being undertaken
those for which
to stand at Rs 99.7 lakh crore.
by the government.
FY23 with the print reaching
implementation has stalled
Rs 239.8 lakh crore in the
(which have not progressed
(other than financial) sector
Source: CMIE capex database & CII Research CMIE capex database, Services same period. Trend in Ongoing Investments (Rs lakh crore)
Note: Data extracted on 11th April 2023 attracted higher investments 72.7 82.3 99.7

from the government. These Total Ongoing Investments (Rs lakh crore) 74.0 71.1
services mainly include airport 250.0
infrastructure, shipping 240.0 239.8
transport infrastructure, road 230.0 129.5 130.0 141.5 142.4 140.2
Top Sectors attracting Investments from the Government in FY23 (Rs lakh crore) 224.7
and railway transport 220.0 214.2
2.50 infrastructure along with 210.0 203.4 201.1 2018-19 2019-20 2020-21 2021-22 2022-23
2.04 transport logistics services. 200.0 Government Private sector
2.00 1.84 190.0
Other sectors such as 180.0 Source: CMIE capex database & CII Research
1.50 Note: Ongoing projects = Outstanding projects – implementation stalled
Electricity (mostly renewable 2018-19 2019-20 2020-21 2021-22 2022-23 Note: Data extracted on 11th April 2023
1.00 0.91 electricity) and Manufacturing
also attracted investments from Source: CMIE capex database & CII Research
0.50 0.33 the government in FY23. Note: Ongoing projects = Outstanding projects – implementation stalled
Note: Data extracted on 11th April 2023
0.20

0.00
Services (other than Transport services Electricity Manufacturing Transport equipment The same sectors reported
financial) higher government investments
Source: CMIE capex database & CII Research during Q4FY23. However, ongoing The section below presents a
Note: Data extracted on 11th April 2023
investments by the break-up of ongoing
government, both Centre and investment analysis into three
States, underwent a marginal categories, viz
contraction, while the ownership-wise, sector-wise
Outlook ongoing investments by the and state-wise.
Government capex remains robust so far private sector reported a
Going forward, continuous double-digit expansion of 21.1
Despite the decline in new Ministry Capex Capex revival in fresh investments per cent in FY23.
government investments, at April-February April-February would help spur growth in
the aggregate level, capital FY23 (Rs crore) FY22 (Rs crore) the economy and also
expenditure made by the indirectly help tame Ownership-wise Capital Expenditure in FY23 (% share)
government has witnessed a Ministry of Railways 147028.4 95703.5 inflationary pressures and
robust rise. In fact, according reduce borrowing costs in
to data released by CGA, the country.
overall government capex has Ministry of Road 195484.4 99065.2
risen by 21.7 per cent Transport & Highways 41.6 36.3
between April-February FY23
compared to last year. Key Ministry of Shipping 612.8 164.2 20.5
ministries attracting higher
capital expenditure include
that of railways, road transport Source: CGA Central Government State Government Private sector
& highways and shipping.
Source: CMIE capex database & CII Research
Note: Data extracted on 11th April 2023

18 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 19
QUARTERLY JOURNAL OF ECONOMICS
QUARTERLY JOURNAL OF ECONOMICS
MAY 2023 MAY 2023