3 sectors dominate investment inflows
Metallurgical, Chemicals (except fertilizers) and Electrical equipment sectors received IEMs worth Rs86,165 cr, Rs75,018 cr and Rs42,968 cr, respectively in 2022
Declining Funds Flow
- 3 sectors account for 2/5th industrial investments
- Mfg share in GDP remains at 17% in last decade
- Total investment proposals fell 45% in 2022
New Delhi: Metallurgical industries, chemicals (except fertilizers) and electrical equipment received maximum industrial investment in the calendar year 2022. In fact, the three sectors have been attracting investors’ attention since 2020, official sources told Bizz Buzz.
Metallurgical industries got 90 industrial entrepreneurial memorandums (IEMs) signed last year, with investment worth Rs86,165 crore, which was 20.32 per cent of the total investment. But this was almost half of Rs172,208 crore in 2021.
Chemicals (except fertilizers) attracted 111 IEMs worth Rs75,018 crore, or 17.69 per cent of the total investment intentions in 2022. This was an improvement, as in 2021 the corresponding figure was Rs69,040 crore.
Electrical equipment got 91 IEMs worth investment intentions of Rs42,968 crore or 10.13 of the total. In terms of total investment intentions, this was lower than Rs65,979 crore in 2021.
These three sectors received almost three-fifths of IEM investments in 2022. In the calendar year 2021 too, the three sectors got most IEM investments, but their proportion in the total investments was two-fifths, which means that industrial investments are getting concentrated in metallurgical, chemicals (except fertilizers), and electrical equipment industries.
As Bizz Buzz reported earlier, the total proposed investment, declined by almost 45 per cent in 2022. It was Rs424,101 crore in 2022, as compared to Rs771,428 crore in 2021.
This is despite the government’s big claims about the potential of industrial growth. Manufacturing is emerging as an integral pillar in the country’s economic growth, thanks to the performance of key sectors like automotive, engineering, chemicals, pharmaceuticals, and consumer durables, says an official website. The Indian manufacturing industry generated 16-17 per cent of India’s GDP pre-pandemic and is projected to be one of the fastest growing sectors, it adds.
But manufacturing’s share in GDP was almost the same in 2011, the year in which the National Manufacturing Policy was announced with the target to make the share go up by 2022.
