Private sector infrastructure investment may stay elusive for another year

Excess manufacturing capacity, banks' reluctance to lend, keep private investments on hold

At the start of financial year 2016-17, there seemed to be a clear government push to increase public sector spending to revive private investment cycle in the infrastructure and energy space. As the sector steps into the current financial year, there appears to be little progress; the wait for private investments could get longer by another year, industry experts believe.

It will take time for private investments to come up. There is excessive capacity in manufacturing, so investments might not be forthcoming. In infrastructure, there is uncertainty. There are issues of funding, as banks are wary of lending to these