Increase in Indian Infrastructure Investments

By admin • August 16th, 2010

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According to a study by the Reserve Bank of India, total investments in infrastructure projects was reported at 53% higher than the costs of all projects in FY10, compared to 45% in FY09 in the sectors including power, telecom, metal and metal products, construction & mining. Total investments in FY10 were at Rs 2,95,805 crore whilst in FY09 they were at Rs 1,49,940 crore. This increase has been credited to a rise in large sized projects.

The reserve bank of India believes investments for 2010-2011 can be maintained at the level for 2009-2010 due to the governments push to improve the infrastructure sector. According to the study “Outlook for demand continues to be a significant factor driving investment intention. With industrial output exhibiting strong acceleration, particularly in recent months, there has been a significant revival in credit demand”.

Around 66% of investments were made into 515 new projects, 26% into 250 proposed investments for ongoing projects. New investments were being made into the metals and metal product sector as the aggregate share in total project expenditure increasing to 20. The next highest share was to construction at 8% and cement at 3%.

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