In the second quarter of 2023-24, fresh investment announcements fell by 13%, totaling ₹6.9 lakh crore. This decline was led by a sharp decrease in proposed outlays by the Union government and foreign investors. The manufacturing, mining, infrastructure, and electricity sectors all experienced contraction.
Private investment plans also shrank for the second consecutive quarter, albeit at a slower rate compared to the previous quarter. Public capital expenditure also showed a decline. The outlook for the second half of the year is mixed, influenced by upcoming state elections and rising global risks. The hope for an uptick in Q3 and Q4 depends on higher project announcements from the Union government ahead of next year’s general election.