Industry Odisha Bureau, May 29: Even though analysts reportedly opine that India’s long-term investment trend is unlikely to get derailed, data has shown that the stalled project rate in the country has fallen further to its lowest levels in over a decade.
As per media reports, “India’s project stalling rate has fallen to a 12-year low of 5.5% in the fiscal year (FY) 2025-26 down from around 11% in FY 2014-15, while inflation ignited by the ongoing as well as geopolitical volatility has every possibility of disrupting recovery.”
Reportedly, the Centre for Monitoring Indian Economy (CMIE)’s data revealed: “While the project stalling rate of the private sector dipped by about 700 basis points over the decade, the public sector’s project stalling rate registered a decline from 5.9% to 2.5% over the decade.”
Media reports added, “The decline has been witnessed in the sectors of construction and real estate, non-financial services, electricity and manufacturing, while manufacturing sector’s project stalling rate’s decline registered 6.9% from 9.5%.”
Media reports quoting the CMIE data further added, “Announcements for new projects dipped about 2% in FY26 in comparison to the 15% growth that had been witnessed in the previous fiscal year since keenness for investment in the current state of economy is noticed to be not so strong. Rather, execution of old projects has been seen to be better than generating new ones in India.”
Going by the current scenario of “geopolitical uncertainty as well as the domestic inflation being stoked by the West Asia crisis”, the analysts anticipate a “squeeze in domestic liquidity that could impact economic activities and threaten the project execution recovery.”
