The investment scenario in the country continues to be grim. The latest data shows gross fixed capital formation, which connotes investment, declined from 31 per cent in Q1FY17 to 28.9 per cent in Q2FY18.
What is even more worrying is that, according to the RBI’s Financial Stability Report, new investment proposals have declined significantly in Q2FY18. The silver lining is, as shown in Chart 1, the number of stalled projects has also declined .
Gross non-performing advances (GNPA) of scheduled commercial banks (SCBs) increased from 9.6 per cent to 10.2 per cent between March and September 2017, as shown in