Big-ticket investments slump 50 %: RBI
27 Aug 2012
The deceleration in GDP growth over the last year has been led by a nearly 50-per cent drop in new investments in large projects, the Reserve Bank of India says.
The slowdown gathered momentum last fiscal, when GDP growth slipped to a nine-year low of 6.5 per cent.
''Envisaged total fixed investment by large firms in new projects, which were sanctioned financial assistance during FY12 dropped by a whopping 46 per cent to about Rs2.1 trillion from Rs3.9 trillion a year ago,'' according to RBI's annual report for fiscal year 2011-12.
The drop was led by the infrastructure and metals sectors, said the report released this week.
''Envisaged investment in infrastructure declined by 52 per cent to Rs1 trillion in FY12 from Rs2.2 trillion in FY11, led by the power and telecom sectors,'' said the report, quoting data collated from banks and financial institutions.
Investment in roads, ports and airports has also decelerated sharply, it added.
