Private investment in July-Sept quarter Rs 2.25 lakh crore; highest quarterly rise since 2011

Could it be signaling economic recovery? Data shows that private companies' investment rose 54% year on year, in the July to September period, the highest in any quarter since 2011.

Zee Media Bureau

​New Delhi: Private investment in the July-September period was about Rs 2,25,000 crore in the July-September period. It is 54% more from a year earlier and the highest in any quarter since 2011, said a report in The Economic Times.

The increase in capital investments and venture capital inflow is likely to boost economic activity in the coming months, said the report.

While companies continue to be jittery of big-ticket investments, conglomerates like Adani and Vedanta, and many smaller companies have announced new projects in the past quarter in an indication of improving sentiment, added the report.

According to the ET Intelligence intelligence data( ETIG), Indian companies - state-owned and private together - announced new projects totalling Rs 3,80,000 crore in the July-September quarter, which was 11.11% higher than a year earlier. Government investments declined to Rs 1,55,000 crore from Rs 1,96,000 crore.

The data compiled by ETIG from the Centre for Monitoring Indian Economy reveal that the growth in investments was primarily driven by electronic and chemical manufacturing, roads, and ports.

However, economists say that we can call it a recovery only if the growth is sustained.