Page 17 - CII Artha Magazine 2022
P. 17

Domestic Trends

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


                                                                               Under the PLI Scheme
                             18.0
                                                                                         Outstanding project
                   16.9

                                                                                         investment (Rs crore)
           16.0
                                                 14.5
 Trends    12.0                        8.6                        Electronics            4,494
                                                                  White goods
                                                                                         4,199
                                                                  (air conditioners
            8.0
                                                                  & refrigerators)
            4.0
                                                                  Transport Equipment
                                                                                         2,300
            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
                                       th
 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)
 8.0
 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
 2.0
 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
 QUARTERLY JOURNAL OF ECONOMICS
                                                                                           QUARTERLY JOURNAL OF ECONOMICS
 MAY 2022                                                                                               MAY 2022
   12   13   14   15   16   17   18   19   20   21   22