Goldman Sachs says that in FY22, the number of new investments and orders went up sharply, and the manufacturing sector, which had been behind for several years, grew by 210 percent compared to 2020-21.
In FY22, the manufacturing sector grew by 460 percent compared to 2019-20.
Investment and CAPEX announcements from the private sector went up by 145 percent from FY20 to FY22 and by 150 percent from FY20 to FY22.
According to the report, the number of projects announced went up by 80% in FY22. This increase was helped by the announcement of megaprojects, especially in the steel sector.
“Traditional sectors like petrochemicals, steel, cement, and cars, as well as newer sectors like electronics, e-vehicles, and data centers, all contributed to the growth,” Goldman Sachs said in the report.
In FY22, the number of contracts given out grew by 55% from the previous year, and the manufacturing sector grew by almost 135% from the previous fiscal. “Awards for Infra have also grown in a good way, mostly because of more work in the roads sector,” the report said.
Even though there were more tenders in FY21 than in FY19, it was said that overall tendering activity, which is mostly for government orders, has been “flattish,” which means that there will be less awarding in the coming months.
Indicators like diesel, gasoline, electricity use, container volumes, and rail freight all got better in March compared to February and the same month last year.
“Despite the effect of Omicron and a tough base, the relatively strong March data drove low-to-mid-single-digit growth on average for 4QFY22,” the investment banking company said. “This is good news for our cement, EPC, and port companies.”
In February, engineering goods were worth $9.4 billion, which was 33 percent more than the same time last year. According to the study, the monthly exports of engineering goods were included to help keep track of how different government programs, like the production-linked incentive plan, affect and change manufacturing activities.