Value of new project announcements down 33.4% in June quarter: CMIE

A IIFL Securities' India-Economy report notes new project announcements had also fallen year-on-year by 13 per cent. Investment in the four quarters ending June were at five per cent of GDP

New project announcements aren’t as plentiful as they once were. The June quarter is an example. Due, it appears, to low capacity utilisation and fundamental changes in some segments that had previously contributed in a big way to such announcements.

Which means the September quarter numbers will be key for hope of an investment cycle pick-up. Headwinds in the period  afterwards makes a pick-up difficult after this quarter.  

The value of new project announcements in the three months ending June dropped 33.4 per cent over the previous quarter to nearly Rs 2.3 trillion, shows data from Centre for Monitoring Indian Economy (CMIE).  

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