Government infrastructure spending increases, driving investments up by 53%

Even though private sector investments fell 41% from 6.31 lakh crore in Q2 to 3.71 lakh crore between October and December 2022, a sharp 61.2% sequential increase in capital spending by the Central and State governments increased new investment plans announced in the third quarter (Q3) of 2022–23 to 7.1 lakh crore.

According to the survey of the most recent project by investment monitoring firm Projects Today, despite a 15.5% quarter-on-quarter decline in new investment plans in the third quarter of the year, total investment projects in the first nine months of 2022–23 have exceeded 21 lakh crore, 53.2% higher than 2021–22 and nearly 2.5 times the investment plans announced in the year prior to COVID of 2019.

7,555 new projects have been announced in 2022–23, which is a slight decrease from the 7,978 projects in the first nine months of 2021–22.

This news was written by Ms. Pujari Dharani, Research Assistant, All India Legal Forum.