Capex on new projects declines further in Q2 amid higher borrowing costs

Higher global borrowing costs are expected to affect growth prospects

Expenditure on new projects slowed down for the second quarter in a row amid an uncertain global environment and higher borrowing costs.

There were new projects worth a cumulative Rs 3.26 trillion in the July-September period, according to data provided by project tracker Centre for Monitoring Indian Economy (CMIE). This figure is much less than Rs 4.39 trillion in the June quarter (Q1FY23) and Rs 8.46 trillion in the March quarter (Q4FY22). Spends on new projects declined 4.4 per cent on a year-on-year basis, too, from Rs 3.41 trillion in Q2FY22. Expenditures on new projects include those by firms or governments