Gross fixed capital formation: Advance estimates hopeful, say analysts

Most of capex brunt being borne by Centre, say analysts

The Centre predicts that gross fixed capital formation (GFCF) — a proxy for private and public investment in infrastructure — will exceed the pre-pandemic period of 2019-20 in absolute terms as well as share of gross domestic product, in real and nominal terms.
 
However, analysts say, the forecast on GFCF, part of the 2021-22 GDP advance estimates released by National Statistical Office on Friday, might be optimistic. This is because most of the brunt of capex and pushing big ticket infrastructure projects are being done by the Centre.
 
Private sector capex is still weak due to continued uncertainty