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New investments in FY20
Why is it in the news?
- As per a latest analysis by Care Ratings, the value of new investment projects in the first half of the current financial year has fallen to a 15-year low of ₹1.9 lakh crore.
More in the news
- Data of new Analysis:
(1) There has been a sustained decline in new projects undertaken in the past five years.
(2) The Indian economy going through challenging times on account of weak investment climate and consumption.
(3) Goss fixed capital formation (GFCF): The investment rate measured as the GFCF as a percentage of GDP has declined consistently over the years and remained between 28% and 29% of GDP in the past 4 years.
- New investment segment:
(1) The government’s share in such investments declined from 56% in FY15 to 36% in FY19.
(2) In the same period, the private sector's share rose from 44% to 64%.
(3) In the first half of FY20, new investments by the private sector contracted by 77%.
(4) New investment projects were mainly seen in the manufacturing sector.
(5) The services and electricity segments witnessed a decline in new investments.
Source
The Hindu.