Investments slipped 46pct in 2012 Financial Year: RBI
According to the latest reports released by the Reserve Bank of India, RBI, saying that the growth deceleration that started in the last financial year, when GDP growth dipped to a 9-years low of 6.5 percent, has been led primarily by a near 50 percent fall in new investments in large projects.
Under the freshly released statement to the FY12 RBI annual report, “Envisaged total fixed investment by large firms in new projects, which were sanctioned financial assistance during FY12, dropped by a whopping 46% to about Rs 2.1 lakh crore from Rs 3.9 lakh crore a year ago.”
Further, it is said in report that the fall was mainly due to the infrastructure and metals sectors.
The report said, “Envisaged investment in infrastructure declined by 52% to Rs 1 lakh crore in FY12 from Rs 2.2 lakh crore in FY11, led by the power and telecom sectors.”
About infrastructure investment for the 2012 fiscal year, the report said that the gross bank credit to infrastructure outstanding as of April this year was Rs 6.2 trillion.
Though, the flow of bank credit to the sector was dipped, due to the policy delays as well as higher interest rates.