• UGI USER
  • Apr 18, 2024
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‘FY24: NEW PRIVATE INVESTMENTS DIP 15%; STATES LEAD CAPEX RISE’:

Why in the news?

FY24 witnesses 15.3% dip in new private investments; States lead capital expenditure rise, Maharashtra tops new project acquisition.



Source:slideshare

About the Investment Trends in FY24:

  • New private sector investment plans declined by 15.3% in 2023-24, while foreign investors reduced new outlays by nearly a third, resulting in a 5% drop in India’s new investment announcements from the record high of almost 137 lakh crore in FY23.
  • Manufacturing sector witnessed the most significant decline, with proposed outlays dropping by 40% from 19.85 lakh crore in FY23 to less than 11.9 lakh crore in FY24.
  • Irrigation and mining investments also decreased by 48.7% and 19.25%, respectively, while electricity and infrastructure saw upticks of 96% and 22%, respectively.
What is Capital Expenditure (Capex) in India?

  • Funds allocated by the government for acquiring, constructing, or improving physical assets like infrastructure and machinery.
  • Enhances productive capacity, generates income, and employment.
  • Presented in the annual budget by the finance minister.
  • Rs 10 lakh crore allocated in Union Budget 2023-24, accounting for 3.3% of GDP, marking 33% growth.

Source: https://www.thehindu.com/business/Economy/new-private-investments-dropped-over-15-in-2023-24-states-led-capex-growth/article68076559.ece