RBI noted in its latest monthly update that Capital expenditure (capex) of the private corporate sector plays a significant role in driving the overall investment climate in the economy. Using data on capex phasing plans indicated by the private corporate sector, the central bank has provided an assessment of the progress on new projects as well as the near-term private investment outlook. Announcement of new projects increased significantly during 2021-22 with the resumption of business activities and improving demand conditions after the ebbing of the Covid-19 pandemic. Infrastructure sector continued to attract maximum capex, led by 'Power' and 'Road & Bridges' sectors. Total capex plan of the private corporate sector in 2021-22 recorded an increase of 13.5 per cent over the preceding year. A major part of this rise is attributed to resources raised through the external commercial borrowing (ECB) route. Of the total capex investment envisaged during 2021-22, more than one third is expected to be spent in 2022-23.
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