In a recent announcement, RBI mentioned a substantial decline rate of 27% in the corporate funds in the projects. As per data, in the year 2014-15, the corporate firms had a total capital expenditure of Rs.1,93,300 crore and from this amount, Rs 71,800 crore was planned to be invested by the corporate companies in fresh projects in 2014-15. Although, the government has counted an economic growth in the last one year, the corporate investment in new projects has reduced by 27 per cent during the financial year end in March 2015. It is ironical that PM, Narendra Modi has recently said that the corporate leaders should 'Invest Now' in the projects. RBI's study has also given some positive signs like lower inflation, deficit in current account, lead in foreign investment inflows etc. Over the last four years, the statistics of capex by India Inc. has been reducing steadily. In 2011-12, corporate investments plunged from 3,68,100 crore to 3,05,000 crore in 2012-13, Rs 2,64,800 crore in 2013-14 and Rs 1,93,300 crore in 2014-15. A regular decline is reported in the current year.
Source: Indian Express