93.7% rise in new manufacturing projects

New project announcements in the manufacturing sector have improved significantly to Rs 6.2 lakh crore in FY22, a rise of 93.75 percent, as against Rs 3.2 lakh crore in FY20, a Bank of Baroda (BoB) study has said.

This was led by improvement in machinery, chemicals and textiles. “Services and the construction sector still seem to be lagging from losses suffered during multiple waves of Covid-19 pandemic, with new project announcements running below their pre-pandemic levels,” the study said.

Sonal Badhan, economist, BoB said, “In FY20, new projects announced in the manufacturing sector had fallen to 17.8%, but rose sharply to 38.3% in FY21 and rose further to 43.5% in FY22. FY22 print is the highest since FY05. This could be the case as the manufacturing sector was less hit by subsequent waves of Covid-19, compared with services sector.”