Investment climate maybe improving: Care Ratings
25/08/2016 13:46
Leading rating agency Care Ratings has stressed that there are early indications that the investment climate in Asia’s third biggest economy may be looking up driven by government measures including strong progress on reforms and higher budgetary capital outlays, alongwith expectations of a better monsoon.
However, the rating agency warned that improvement in the investment scenario is limited to specific industries and sectors, meaning that a sustained turnaround in the Indian investment cycle is still some time away.
There has been an 18.7 per cent rise in the number of proposals in the first half of the year while proposed investment has witnessed a marginal increase of 1.3 per cent and the employment associated with these proposals was higher by 37.3 per cent, signaling a pickup in investment intentions.
Electrical equipment and textiles accounted for the majority of investment intentions in the first half of 2016.
“There are early signs that the investment climate may be looking up. But this is not yet well spread and is concentrated in specific industries and states. This evidentially has to become more pervasive before it may be concluded that the cycle has turned. The decline in dropped projects and an improvement in the implementation to intentions ratios in the context of IEMs are two positives that would need to be closely monitored” Care Ratings said in a report.
25/08/2016 13:46
Leading rating agency Care Ratings has stressed that there are early indications that the investment climate in Asia’s third biggest economy may be looking up driven by government measures including strong progress on reforms and higher budgetary capital outlays, alongwith expectations of a better monsoon.
However, the rating agency warned that improvement in the investment scenario is limited to specific industries and sectors, meaning that a sustained turnaround in the Indian investment cycle is still some time away.
There has been an 18.7 per cent rise in the number of proposals in the first half of the year while proposed investment has witnessed a marginal increase of 1.3 per cent and the employment associated with these proposals was higher by 37.3 per cent, signaling a pickup in investment intentions.
Electrical equipment and textiles accounted for the majority of investment intentions in the first half of 2016.
“There are early signs that the investment climate may be looking up. But this is not yet well spread and is concentrated in specific industries and states. This evidentially has to become more pervasive before it may be concluded that the cycle has turned. The decline in dropped projects and an improvement in the implementation to intentions ratios in the context of IEMs are two positives that would need to be closely monitored” Care Ratings said in a report.
