Experts say govt driving capex even as FinMin praises private sector

Experts believe that investments are down and driven by government, PSUs

Investments were higher in the first quarter (Q1) of the current fiscal year (2021-22, or FY22), compared with the corresponding washout quarter of 2020-21 (FY21). But they were significantly lower in relation to the pre-pandemic 2019-20 (FY20) or the fourth quarter of FY21. 

While the finance ministry believes investments are being driven by the private sector, most independent economists say they are being pushed by the government and public sector enterprises.

Investments rose 55 per cent in Q1FY22 on a low base of 46.6 per cent a year ago, giving an overestimated figure. The correct picture can be gauged from