Not-broad based Investment Climate in India,Reduce uncertainty required:Bank of Baroda

NOT-BROAD BASED INVESTMENT CLIMATE IN INDIA, REDUCED UNCERTAINTY REQUIRED: BANK OF BARODA

According to a research by the Bank of Baroda, the investment landscape in India is one of cautious movement in particular industries and is not broad-based.

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According to the bank research, determining the attitude of private investment will take several quarters.

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Higher interest rate scenarios and inflation, along with ongoing global political instability, will accelerate the pace of investment in the next months, it added.

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The investment climate in India began in a lower tone in Q1FY23,

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with statistics indicating a substantial reduction in new project announcements compared to Q4FY22.

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The reduction was widespread, but the industrial sector saw the greatest drop.

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However, when compared to previous years, Q1FY23 announcements were more than those in 2019, 2020, and 2021.

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India’s foreign reserves declined by $6.687 billion to $564.053 billion.

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