look news india
New Delhi: Investment in manufacturing, construction and mining sectors has decreased in the financial year 2023. This decline in investment, expressed as gross capital formation, is mainly due to a decline in exports and a decline in private consumption. This information is provided in the industry-wise analysis of National Accounts Statistics, 2024 released by the Ministry of Statistics and Program Implementation.
This at a time when gross capital formation at constant prices is expected to grow by 6.9 per cent in FY2023 to Rs. 55.3 lakh crore. Gross capital formation is a broad measure of investment in an economy and represents the total value of physical assets, including fixed assets, inventories, and valuables.
On the other hand, gross fixed capital formation narrowly reflects investment in the economy. This is because it does not include valuable inventory or acquisitions. This may represent lower production growth during the year.
According to economists, the manufacturing growth is due to lower capacity utilization and lower investment initiatives by companies. Apart from this, due to high capital expenditure on construction sector by the government, capital formation in this sector has also reduced.
Capital formation in this sector in FY 2022 will be Rs. Increase by 2.9 percent to Rs 4.14 lakh crore in financial year 2023. Rs 4.02 lakh crore was spent. The main reason for this decline is the decline in the affordable housing sector.