New project announcements in India plunged to a 16-year low in the just-ended June quarter, latest data from the project-tracking database of the Centre for Monitoring Indian Economy (CMIE) shows. As the country remained under lockdown for most of this period to combat covid-19, economic activity dropped sharply. Animal spirits of India’s entrepreneurs also seems to have dried up, the latest data suggests.
Private investments in India have been anaemic for a while, and the decline in economic activity seems to have dampened sentiments further. Government-led investment projects, which had seen their share rise over the past few years, also collapsed in the latest quarter. The drop was particularly sharp for state governments, which have been finding it hard to finance even routine expenditures.
No comments:
Post a Comment