Fresh investment increased by 10.5 percent in Q3/FY19

As per the 73rd Projex Investment Survey of Projects Today, during Q3/FY19 (Oct-Dec 2018), 2,670 greenfield projects were announced in India. These projects would bring in fresh investment to the tune of Rs 3,39,257 crore. When juxtaposed with Q2/FY19 projex figures, it indicates a growth of 10.5 percent. The growth came on top of the 47.8 percent growth in projex recorded in Q2/FY19 on Q-o-Q basis.

While the Manufacturing sector maintained the growth momentum observed in Q2 with a subdued growth rate of 17.2 percent, the Power sector rebounded with a growth of 44.7 percent in projex vis-à-vis a steep fall of 60.3 percent recorded in the preceding quarter. The slowdown in fresh investment intentions by the Central government units saw a lower growth of 12.1 percent in the Infrastructure sector. The sector had posed a healthy growth of 68.3 percent in the preceding quarter.

Belying our expectations, the poll-bound states like Rajasthan, Madhya Pradesh and Chhattisgarh saw healthy increase in state government projex announcements. Telangana was an exception, where overall fresh investment fell by 63.4 percent. While Telangana saw the same government returning to power, Rajasthan, Madhya Pradesh and Chhattisgarh saw change in governments. This means some of the projects, schemes announced by the erstwhile government in Q1/FY19 and Q2/FY19, are likely to get reviewed by the newly-formed governments. We have already seen some reversals in Rajasthan.