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Private sector investment may see rise
Why it is in news?
- Centre for Monitoring Indian Economy (CMIE) states that the value of new project announcements by private sector increases for first time in 2 years.
- Of the share of announcement made by the Private sector, a bulk was made by the foreign companies.
- Private sector new project announcements in the June 2018 quarter grew 43% over what was announced in the same quarter of the previous year. The share of Indian private sector accounted for 30.4% of all announcements made by the private sector.
- In contrast, the government announced saw a contraction of 77.6% over the June 2017 quarter marking the fifth consecutive quarter of contraction.
- As a result, private sector announcements made up 88% of all new project announcements in the quarter, the highest proportion the sector has achieved since September 2003.
Way forward:
- Demonetisation and the GST impact are considered to be two major issues due to which the private sector got a jolt. Now that the impact of these two massive changes have subsided, the revival of the private sector, and specifically MSMEs, needs to take place
- The government needs to take more steps towards the revival of MSMEs. As a lot of these investments are by medium-sized entrepreneurs.
Source
The Hindu