Post Demonetisation, Projects Announcement in India

Has Demonitisation affected the Projects Investment in India?

In some segments of the press, it was recently reported that post demonetisation, announcement of new projects came down drastically. Is this true? Well, the project investment data available for the last quarter indicates no such drastic fall.

Project Investment after Demonitisation, Fact

As per ProjectsToday, in the third quarter (Oct-Dec 2016) in all, 2,362 projects worth Rs 2,46,814 crore were announced. Of this, 920 projects worth Rs 1,13,515 crore were announced prior to demonetisation (i.e. from 1 Oct, 2016 to 8 Nov, 2016) and 1,442 new projects worth Rs 1,33,299 crore were announced the post demonetisation period till 31 December, 2016.

Fresh Projects Announcement - Oct - Dec 2016 Post Demonitisation

Source: ProjectsToday.com

Even by per-day project announcement measure, more projects (by both, government and private companies) were found announced during the post demonetisation period.

As far as slowdown in private investment, the trend is not a recent one; it has been observed since last two years. Indian capex cycle is currently propelled by government projects and not by private investment.




Fresh Projects Announcement: October – December 2016
Pre-Demonetisation Post-Demonetisation Total
Ownership Projects Rs Crore Projects Rs Crore Projects Rs Crore
Government 813 67,850 1,199 95,781 2,012 1,63,631
Private 107 45,665 243 37,518 350 83,183
Total 920 1,13,515 1,442 1,33,299 2,362 2,46,814

 

Also read: Indian Public sector’s dominance in Fresh Investment continues

The above findings are part of the 65th Survey of Projects Investment in India, conducted by ProjectsToday. The Survey covered 59,929 projects entailing a total investment of Rs 109,06,756 crore (approx. USD 1606.3 bln.)

 

Posted in: Fresh Investment, Government, Project Development

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