Investment growth comes up short despite govt capex push
Business Standard|September 01, 2023
Investment growth moderated slightly in the economy during the first quarter (Q1) of the current financial year (2023-24, or FY24), notwithstanding the front-loading of capital expenditure (capex) by the Centre. 
INDIVJAL DHASMANA
Investment growth comes up short despite govt capex push

LOPSIDED VIEW

This was also the case despite a pick-up in demand during the period after two dismal consecutive quarters.

Although growth in gross fixed capital formation (GFCF), representing investment, fell to a five-quarter low of 7.96 per cent, the comparison with the first two quarters of the previous year is a bit askew due to the low year-on-year (Y-o-Y) base of those periods. When comparing the investment growth rate in Q1 of this financial year with the previous two quarters, the fall was not too significant.

Growth was 7.99 per cent in the third quarter (Q3) and 8.92 per cent in the fourth quarter (Q4) of 2022-23 (FY23).

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