India sees 37% rise in project investment in FY'09

India witnessed 37 per cent growth in project investment in 2008-09 and going forward, the pace of these fund infusions will remain moderate in this financial year as well, a survey says.

According to the survey of project investment in India by ProjectsToday, as of March 31, 2009, there were 29,628 projects worth Rs 42,35,484 crore, a rise of 37.4 per cent in terms of investment and 29 per cent increase in terms of number of projects over the year-ago period.

As of March 2008, the country had 22,883 projects worth Rs 30,83,264 crore.

Going forward ProjectsToday expects the public sector to continue its project investment activities during 2009-10 in the critical infrastructure sectors like roadways, water supply, electricity, irrigation and community services, the same cannot be vouched for the private sector, which appears to be waiting for some more concrete signs of revival.

"Given this situation, the pace of project investment will remain moderate at least in the first half of 2009-10," ProjectsToday said.

A sectoral analysis shows that the services and utilities sector cornered the largest investment in the just ended fiscal, with a share of 36.1 per cent in total investment, followed by the manufacturing sector at 33.6 per cent and the electricity sector at 31.5 per cent.

Published in Economic Times dated 11 April 2009