Investment Prospects worth Rs 1.02 Lakh Crore across Sectors: Govt
<span style="font-weight: 400;">The government has identified investment prospects worth Rs 1.02 lakh crore across sectors overseen by 23 key ministries and departments, as it seeks to fast rekindle growth impulses through a virtuous cycle of investments and soften the Covid blows to the economy.</s
Published -
Jan 6, 2021 4:59 AM
The government has identified investment prospects worth Rs 1.02 lakh crore across sectors overseen by 23 key ministries and departments, as it seeks to fast rekindle growth impulses through a virtuous cycle of investments and soften the Covid blows to the economy. It has identified a total of 806 investment prospects and shared these with the project monitoring cell of respective ministries last week for further push. Prospects in departments, including steel, housing, heavy industries, commerce, economic affairs, textiles and food processing, are included in this assessment. An empowered group of secretaries (EGoS), set up in June under Cabinet secretary Rajiv Gauba, has asked all wings of the government to vigorously pursue investment proposals having greater potential of fruition. Secretaries have been asked to monitor pending foreign direct investment (FDI) proposals and ensure speedy clearances. The idea is to end an investment famine that had set in even before the pandemic. Given that overleveraged, Covid-hit domestic private investors have cut down on fresh expansions, the reliance on FDI has risen substantially. Although a contraction in gross fixed capital formation substantially narrowed from 47.1% on-year in the first quarter to 7.3% in the three months through September, it still remained far below trend. Private consumption, meanwhile, shrank at a faster pace of 11.3% in the September quarter. With the businesses going through the reset phase after the substantial lifting of the lockdown curbs, the government hopes to make a sustained push now to draw investors. It made renewed efforts in the aftermath of the pandemic by announcing 13 PLI schemes, covering sectors including telecom, electronics, auto part, pharma, chemical cells and textiles. It pledged investments of close to `2 lakh crore over a five-year period to woo investors and boost domestic manufacturing.
Tags : News/Views growth India Government Investment Prospects