Page 16 - CII Artha Magazine 2022
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Domestic Trends

        Investment                                                                                                                20.0  Overall New Projects Added Annually (Rs lakh crore)  Sector    Top Sectors Attracting Investment

                                                                                                                                                                                                      Under the PLI Scheme
                                                                                                                                                                                                                Outstanding project

                                                                                                                                                                                                                investment (Rs crore)
        Trends                                                                                                                    12.0                        8.6                         Electronics           4,494
                                                                                                                                                                                          White goods
                                                                                                                                                                                          (air conditioners
                                                                                                                                                                                          & refrigerators)
                                                                                                                                                                                          Transport Equipment
                                                                                                                                   0.0                                                    Drugs & Pharma        4,015
                                                                                                                                         2018-19   2019-20   2020-21    2021-22
                                                                                                                                                                                          Textiles              1,580
                                                                                                                                               Source: CMIE capex database & CII Research
                                                                                                                                                                                          Source: CMIE capex database & CII Research
                                                                                                                                                                                          Note: Data extracted on 27th April, 2022
        I nvestment plays a vital role   New projects worth Rs 5.13                                                             NEW INVESTMENTS             The rise in investment in the   Ongoing               aftermath of Covid-19 and
         in the economic growth of
                                   lakh crore were introduced
        any country. It has a multiplier   during the quarter, taking the                                                       UNDER INDUSTRIAL            manufacturing sector could                            sustain growth and
                                                                                                                                                            be attributed to the
                                                                                                                                                                                                                  development. Total ongoing
        effect which not only helps   total print to Rs 14.45 lakh                                                              SECTOR WITNESS A            Production Linked Incentive   Projects                investment (government +
        improve productivity but also   crore in FY22. This marked a                                                            REBOUND                     (PLI) scheme announced by                             private sector) in India
        enhances scale and         68.9 per cent increase during                                                                                            the government to boost                               reached Rs 209.6 lakh crore
        competitiveness of an      the year, as economic activity                                                                                           India’s manufacturing       This section analyses the   by the end of FY22, marking
        economy. Recognising its   continued to recover.                                                                       A sharp rebound in new       competitiveness, encourage   trend in ongoing projects from   a 1.6 per cent increase from
        significance, the government   However, the level is still                                                             investments was witnessed    scaling up and create gainful   the CMIE database. Ongoing   FY21 and a 7.6 per cent
        of India has focussed on   below the pre-pandemic level.                                                               across industries. The       employment. Further, the PLI   projects are basically   increase from FY20.
        reinvigorating capital                                                                                                 manufacturing sector         scheme also attracted global   outstanding projects less
        expenditure and energising   Both public and private                                                                   continued to attract higher   companies looking for a     those for which          In the section below, we
        public investment through   sector investments witnessed                                                               investment, with the print in   China +1 manufacturing   implementation has stalled   break-down the overall
        various channels like National   a rebound during FY22. While                                                          FY22 recording 89.2 per cent   strategy and shifting part of   (which have not progressed   investment analysis into three
        Infrastructure Pipeline (NIP),   private sector investment                                                             more investments than in the   their manufacturing to India.   over a certain period). It is   categories, viz ownership-wise,
        National Monetization      more than doubled in FY22,                                                                  previous year.                                           important to analyse the   state-wise and sector-wise.
        Pipeline (NMP) and the Gati   as per the CMIE data, public                                                                                          As per the CMIE data, the   trends in ongoing projects as
        Shakti plan.               investment grew by 15.5 per                                                                 Among the key sectors,       total value of outstanding   well since they tell us about
                                   cent in FY22. The Union                                                                     Electricity, Metals & Metal   projects (announced or     the investment trajectory over   TOTAL ONGOING
        This section analyses, in detail,   budget of 2022, with its focus                                                     Products, Transport Services,   under implementation)    a period.                  INVESTMENT
        the recent trends in       on government capital                                                                       Chemicals & Chemical         under the PLI scheme stands                            (GOVERNMENT +
        investment, based on the   expenditure, set the trend for                                                              Products and Machinery were   at Rs 22,460 crore (as on   Both the public and private   PRIVATE SECTOR) IN
        CMIE Capex Database, which   crowding in private capex,                                                                the other sectors which      27  April, 2022).  As of date,   sectors have been making   INDIA REACHED RS
        would help to assess the   which is clearly visible                                                                    attracted higher investments   electronics sector has the   investments in multiple areas.   209.6 LAKH CRORE
        impact of the recent       through these figures.                                                                      in FY22.                     highest outstanding project   Their spending increased during   BY THE END OF FY22
        initiatives taken by the                                                                                                                            investment, followed by the   the pandemic year to help
        government to facilitate                                                                                                                            white goods sector.         economy recover from the
        investment revival.                             Trends in New Project Announcements (Rs lakh crore)
         NEW PROJECT                                                                                                                  Top Sectors Attracting Investment in FY22 (Rs lakh crore)  Trend in Overall Investment in Ongoing Projects (Rs lakh crore)
         ANNOUNCEMENTS                     6.0                                                                                   8.0                                                       215.0
         ACCELERATE TO A                      4.3                                                                                6.0     6.1    4.9                                        210.0                               209.6
         RECORD HIGH IN                    4.0                                                                                   4.0                                                                                 206.4
         Q4FY22                                                                                        2.9                       2.0                    2.6    1.7    1.4     1.1          205.0

                                                                                                                                 0.0                                                       200.0  199.2
        The levers for revival in             3.4                                                                                                      products       products             195.0            194.8
        capital expenditure seem to                                                                    2.2                              Manufacturing  Electricity  Metals & metal  Machinery
        be falling in place as the         0.0                                                                                                                Transport services  Chemical & cemical  190.0
        pandemic wanes. The new              Dec-19  Mar-20  Jun-20  Sep-20  Dec-20  Mar-21  Jun-21  Sep-21  Dec-21  Mar-22
        investment jumped                                                                                                                                                                  185.0  2018-19  2019-20  2020-21   2021-22
        considerably in the recently                             Government  Private sector                                                    2018-19  2019-20  2020-21  2021-22
        concluded March quarter.                                Source: CMIE capex database & CII Research                                     Source: CMIE capex database & CII Research             Source: CMIE capex database & CII Research

        16   ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY                                                                                                                                               ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY  17
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