Stunning 6,75,000 Crores Worth Investments Annouced

Investments worth 6,75,000 Crores were announced in past the 75 days says Financial Express. Stunning! That's about $150 billion - about 20% of GDP! Based on 93-96 investments announcement make by Indian companies, CMIE estimates on 5-10% will actually get off the drawing board. If I remember correctly mid-90s to late 90s was a period recession and slow growth (5-6% GDP growth). But now, if the economy continues at 8-9% rate, the prospect of actual investments would surely be higher than 5-10% - may be in the range of 25-30%. Think about the jobs and ripple effect of these investments.

Karnataka takes the biggest slice followed by Orissa, Maharastra, Chattisgarh, and Gujarat. And most are in high capex intensive industries such as power, mining, and petrochem.

"The Tata group has topped with the maximum capital announcements worth Rs 1,20,000 crore , followed by ONGC at Rs 1,14,000 crore and RIL at Rs 59,000 crore.

Among the states, Karnataka was the most favourite destination for India Inc, grabbing announcements worth Rs 63,000 crore ($ 14 billion), largely in the power, petrochemical and cement sectors, according to industry chamber Assocham, which has computed the investments."

It just shows that the economic boom has just begun.