New capex announcements declined for the second time in a row in the just-ended September quarter, suggesting that the animal spirits of Indian industrialists have been subdued by domestic and global headwinds.
Fresh data released by the project-tracking database of the Centre for Monitoring Indian Economy (CMIE) shows that Indian companies announced new projects worth ₹1.49 trillion in the quarter ended September, down 41% from the previous quarter, and 12% lower than in the same period last year (chart 1).
The sustained decline in capex announcements was led by a sharp decline in new project announcements by the private sector. New private sector projects fell 64% in the September quarter compared to the June quarter. Compared to a year ago, they were 31% lower. Read More