Projects Today’s Quarterly Investment Survey conducted in January 2018 indicated that fresh investment by the private sector increased by an impressive 37.5 percent in the first nine months of the FY18 on a year-on-year basis and the outstanding projects investment as of 31 December 2017 increased by 14.9 percent — the second highest growth rate recorded in the last seven years.
During April-December 2017 period 1,329 new projects entailing a total investment of Rs 2,75,483 crore were announced by private companies. Despite a small fall in the number of new projects, the fresh project outlays increased by 37.5 percent. The increase is noteworthy because the investment spiked despite the temporary disruption caused by the major tax reform, GST implemented by the government in July 2017.
Notwithstanding the impressive show by the private sector, the total fresh investment including that of the government sector fell by 0.4 percent during the first nine months of the current fiscal.
As of December 2017, there were 64,712 projects entailing a total investment of Rs 1,25,36,665.9 crore spread across India. Of this 15,977 projects with a total investment commitment of Rs 40,92,559 crore were under execution, indicating project implementation ratio of 32.6 percent.
The total investment put on the back burner shot up by 28 percent in the first three quarters of the FY18 on a year-on-year basis. During April-December 2017, 560 projects worth Rs 3,33,279 crore were stalled as against 632 projects worth Rs 2,60,266 crore stalled during the same period a year ago.