Fund flow fails to pick pace

dc correspondent

Business, In Other News

euphoria in the stock market has yet to be converted into investments in the manufacturing and industrial sectors

Picture for representational purpose
Mumbai: The euphoria in the stock market has yet to be converted into investments in the manufacturing and industrial sectors according to figures by commerce ministry and other sources. The data provided by the ministry of commerce (DIPP) suggests that the total number of investment proposals involved during the first five months of FY15 declined considerably by 34 per cent to 656 proposals from 991 proposals in FY14. 

 

However, the aggregate amount proposed for industrial investments increased slightly from Rs2.48 lakh crore during April-August 2014 to Rs 2.59 lakh crore in same period of FY15 with a growth of 4.5 per cent. According to Care Ratings the actual implementation of investments was also far lower than those proposed, because of the slow economic recovery.  

 

The actual investments implemented amounted to only Rs 6,969 crore during the cumulative period April-August 2014 out of the proposed Rs2,59,487 crore registering an increase of merely 1.7 per cent over the corresponding period of the previous fiscal when the investment implanted was `46.183 crore of the proposed Rs2,48,332 crore. 

 

Going ahead, Care’s chief economist Madan Sabnavis said, “Given the improving investment sentiments on account of concerted efforts of the government to boost investments by eliminating the policy bottlenecks may re-ignite the investment scenario.But it also continues to be a challenge to the government for filling in the gaps for additional investments required as the underlying stresses in government finances remain.Moreover, given the mixed picture as indicated by the financial and economic indicators, we need to adopt a wait and watch approach as to how investment pans out in the rest of FY15.”

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