The new cycle will depend on the implementation of the government. Policy’
India’s private industrial investment cycle is set to bounce back, rating agency Crisil said in a research note on Monday, citing growth beyond pre-pandemic levels in industrial entrepreneur memorandum (IEM) filings with the government. Speed of approvals, and increase in foreign direct investment.
CRISIL estimates that production linked incentive (PLI) schemes for 13 sectors and rising commodity prices will impact fresh private investment, aided by liberal monetary policies, lower interest rates, rising merchandise exports and supply chain diversification. . Macro and micro triggers for recovery from the fall in private investment last year include flushed global liquidity and healthy corporate balance sheets, it noted.
‘New growth drivers’
“Overall, private industrial capital expenditure is entering a new cycle after the hiccups of the pandemic – this time armed with a new set of growth drivers,” research analysts at Crisil said in the note, emphasizing that That the new capex cycle will depend on government support and implementation of policy measures.
Estimating that industrial investment would grow by 30% over the period 2021-22 to 2023-24, Crisil said the PLI scheme had given ‘a much-needed booster dose to reduce capex’, which would have touched almost two years. It could have taken years. Pre-pandemic levels in its absence.
“As a result of the implementation of the scheme, the total industrial capital expenditure during the financial year 2022-2024 will increase by 1.3 times as compared to the financial year 2018-2020,” he said.