Private sector investments yet to gather pace despite finmin optimism

Private sector prefers to be in wait-and-watch to see sustainability of demand and how markets play out as tapering sets in with most central banks

While the finance ministry is upbeat about the revival of investments in the economy, one has to wait a bit to see the private sector pump in big money.  

In its latest monthly review, the department of economic affairs under the ministry said the stage is set for India’s investment cycle to kick-start, which would catalyse its recovery towards becoming the world's fastest-growing large economy. The department was optimistic due to the rapid pace of Covid vaccinations.

Let us look at some facts. The gross fixed capital formation (GFCF) rose 55 per cent in the first quarter (Q1) of FY22,