Tepid growth in corporate investments in Q1

New Delhi: Private investments, including public-sector enterprises (PSEs), grew only 2.6 per cent YoY in 1QFY24, marking the slowest growth in 11 quarters, as per a report by Motilal Oswal Financial Services. The government sector accounted for 16.6 per cent of total investments in 1QFY24, up from 12 per cent in 1Q of the past three years and 10 per cent in the past decade.

Corporate investments (including PSEs) declined for the second consecutive quarter in 1QFY24. Following a contraction of 0.5 per cent YoY in 4QFY23, corporate investments likely fell 6.2 per cent YoY in 1QFY24. The share of corporate sector, thus, fell to 41.2 per cent of total investments, lower than 50 per cent in the pre-Covid period, the report said.