Govt Announcements for Infra Projects at New Low in December Quarter: Report
The Wire Staff
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New Delhi: Government announcements for the building of new roads, railways, and other capital expenditure projects may have hit an all-time low, Business Standard reported, citing Centre for Monitoring Indian Economy (CMIE) data, for the December quarter.
It was at Rs 26,987 crore in the three months ended December, the newspaper reported, citing the data.
It added that this number is the lowest since March 2009.
The previous quarter had recorded Rs 70,081, also near the record low of Rs 62,369 crore for December 2020 during the initial months of the COVID-19 pandemic, the report said.
The December 2023 number marks an 81% year-on-year decline in new government projects, it added.
Private projects also showed a similar decline of 77% year-on-year to Rs 1.9 trillion in December, the business daily reported, citing latest available data.
According to Mint, Rs 1.2 trillion worth of projects got completed during the December quarter, which is lower than the average of Rs 1.7 trillion worth of quarterly completions in 2023.
Some analysts told the newspaper that they expect the near-term outlook to remain patchy with the 2024 election season round the corner as new project approvals could face delays.
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