Private Sector Capex Investment Rose Up To 150% In 2021-22: Goldman Sachs
Manufacturing sector increases capex investment of private companies in 2021-22
Capital expenditure (capex) investment announced by the private sector saw an increase of 145 to 150 per cent in 2021-22 over the corresponding financial year, as manufacturing was the major driving factor for both capital expenditure and orders during the year.
According to industrial data released by investment banking firm Goldman Sachs, the manufacturing sector witnessed a massive jump of 210 per cent to 460 per cent in 2021-22 as compared to 2020-21.
While this growth was mainly supported by large project announcements (particularly in the steel sector), the number of projects announced also increased by 80 per cent to 140 per cent in 2021-22 over the same fiscal year.
Sectors such as petrochemicals, steel, cement and automobiles, as well as new-age sectors such as electronics, e-vehicles and data centers, contributed to the growth of the manufacturing sector, the investment banking company noted.
Engineering goods exports remained strong at $9.4 billion in February 2022, up 33 per cent year-on-year.
The year 2021-22 witnessed an overall growth of 55 per cent in award of contracts and
The manufacturing sector saw a year-on-year growth of 135 per cent.
It is stated that the high activity in the road sector has led to the development mainly in the infrastructure sector.
Indicators in the month of March (Diesel, Petrol,
power demand, container volume and railway freight) as compared to February and also on year-on-year basis.
Relatively strong data for March drove year-over-year growth to low- to mid-single digits
Despite the impact of Omicron, the average for the fourth quarter of 20212-22, the firm said.
Goldman Sachs concluded that trends remained stable in April so far, with electricity demand up 8.5 per cent year-on-year and railway freight up 8 per cent.
