Notes on Indian equities, sectors and economy

Slowdown in Investments

Posted by fairval on June 14, 2011

An article titled Where have all the Investments Gone by Mahesh Vyas in FE has some very interesting and worrying data. Some excerpts:

CMIE’s CapEx database has thrown up three disturbing signals. The first is that the pace of announcement of new investments has fallen substantially. New investment announcements amounted to R2.63 trillion in the quarter ended March, 2011. This was lower than the R2.92 trillion in the preceding quarter, which, in turn, was lower than the R3.57 trillion worth of new announcements made in the earlier quarter. The average value of new investment announcements in the past three quarters, at about R3 trillion per quarter is nearly half the R5.8 trillion per quarter average in the preceding three quarters.

The total new investments announced in 2010-11 were lower than in 2009-10. This, and the persistence in the fall in quarterly new investment announcements, indicates a possible slowing down….










One Response to “Slowdown in Investments”

  1. Dev said

    Seems like if not recession or depression, depressed times might be closer than we think…

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