New Delhi
Private sector capital expenditure (capex) in manufacturing surged by around 150 per cent in 2021-22 year-on-year backed by mega project announcements in steel, cement and auto sectors, Goldman Sachs said in a report.
New investment/capex announcements by the private sector saw a 145-150 per cent increase in FY22, compared to FY21/FY20, Goldman Sachs report showed.
“New investment/capex announcements and ordering activity have seen a sharp pick-up in FY22 (both over last year and pre-COVID levels),” Goldman Sachs noted in the report titled ‘Make In India’ tracker.
The manufacturing sector, which has lagged for multiple years, saw an increase of 210 per cent/460 per cent in FY22, compared to FY21/FY20.
While the increase was aided by mega project announcements (especially in the Steel sector), the number of projects announced also increased by 80 per cent/140 per cent in FY22, compared to FY21/FY20, the report said. The growth was contributed by both traditional sectors like petrochemicals, steel, cement and automobiles, and new-age sectors like electronics, e-vehicles and Data Centers.
The government contracts also gave a big push to the Make in India initiative. Contract awarding saw an overall increase of 55 per cent year-on-year in FY22, and the manufacturing sector witnessed a growth of 135 per cent year-on-year.
Growth in awards for infrastructure projects has been decent as well, primarily driven by higher activity in the roads sector.
The report also has a chapter on the Production Linked Incentive (PLI) scheme of the government.
