Fresh investment announcements in the July-to-September quarter, the second quarter of 2023-24, have dropped to Rs.6.9 lakh crore, 13% lower than the first quarter, and 21.5% down from a year ago, driven by a sharp dip in proposed outlays by the Union government and foreign investors, and a broad-based contraction across the manufacturing, mining, infrastructure, and electricity sectors.

• The decline in investment commitments during Q2 comes on the back of a 45.8% sequential decline recorded in the first quarter, as per Projects Today’s latest investment survey.
• A total of 2,238 new projects with an aggregate investment intention of Rs.6.88 lakh crore were announced in Q2, as against 2,745 new projects worth ?7.91 lakh crore in Q1, with the projects’ tally contracting 18.5%.
• Private investment plans shrank for the second quarter in a row, albeit at a slower pace of 0.24% compared to the 62.5% contraction in Q1.
• Within the Rs.3.93 lakh crore of private investment projects in Q2, announcements from foreign investors shrank 66.5% from Q1 levels to around Rs.28,000 crore.
• Though domestic private players announced 17.8% larger outlays in Q2, the number of new projects fell to 844 from 1,180 in Q1.