Investing into the slowdown: Industry optimism defies weak signals

The Reserve Bank of India cut its growth forecast in its latest policy meeting, but in some ways Indian industry seems remarkably optimistic.

 

The value of new manufacturing capacity added in the last 12 months is the highest in at least 14 years, shows a Business Standard analysis of Centre for Monitoring Indian Economy (CMIE) data for completed projects. The capacity additions have come in sectors like chemicals, which has seen both domestic and global tailwinds, as well as transport equipment (automobile and ancillary) industry (Charts 1, 2).