This was unlike the previous two quarters when the capex slowdown was driven largely by a fall in private investment. Investment in new public sector projects fell by 77% compared to the March 2019 quarter and by 84% from a year ago while investment in private sector projects fell similarly (83% compared to the previous quarter and 89% compared to last year). While the 2014 elections quarter saw an increase in investment, in both the 2009 and 2004 election quarters investment fell compared to previous quarters. However, compared to both 2009 and 2004, investment in the June 2019 quarter fell the most - suggesting a deeper investment malaise in the economy. According to CMIE data, private sector projects are being stalled at unprecedented rates.

Source: Mint July 01, 2019 10:31 UTC