The investment climate seems to be cooling down. The value of new project announcements moderated to Rs 3.7 trillion in the three months to June from Rs 5.8 trillion recorded in the quarter ended March this year.
The decline in new projects was the sharpest in manufacturing—down to Rs 1.4 trillion from Rs 2.3 trillion—largely led by machinery, which contributes a major share in gross capital formation.
New investment proposals by the government dropped to 0.3 trillion in the quarter, the lowest in six years.
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