Recovery? Unlikely

Even as the various chambers of commerce are optimistic about a recovery and the business sentiment is upbeat, there is little gross fresh investment being made to give the much needed impetus to the economy. According to the 18th quarterly investment survey undertaken by the CMIE, the gross fresh investment proposals declined for the third consecutive year from Rs 3,86,371 crore in 1995-96 to Rs 2,01,742 crore in 1998-99.

The total outstanding investment as of April 1999 at Rs 12,81,273 crore was a mere 4.8 per cent higher than such outstanding investments a year ago. More than half of the gross fresh investment proposals are in the infrastructure services sector. Manufacturing and power projects accounted for 23 and 17 per cent respectively.