Project stalling rate eases to 12-year low; sharper decline for pvt sector

Private-sector capex may face headwinds from a growth slowdown, suggested independent market expert Ambareesh Baliga

In an indication of a better investment situation, the rate at which private projects are getting stalled has fallen to its lowest levels in over a decade.

 

This comes amid a renewed focus on the investment cycle with the Reserve Bank of India noting in its October 21 bulletin: “the time for private investment is now; delay risks loss of competitiveness.” 

Around 4.61 per cent of outstanding projects were stalled, according to the September-quarter numbers from the Centre for Monitoring Indian Economy (CMIE). It had touched a peak of 10.53 per cent in March 2020. It has since been in