June 2023 marks lowest value of quarterly manufacturing announcements in 2 years

New Delhi, July 4 (KNN) The month of June 2023 has seen a decline in the new investment projects in the manufacturing sector, as per the Centre for Monitoring Indian Economy (CMIE).

Since December 2020, the previous month saw the lowest value of quarterly manufacturing announcements.

The value of new projects was lower than in the March quarter, as well as the year-ago period, shows data from project tracker the Centre for Monitoring Indian Economy (CMIE).

The new project announcements worth around Rs 85,000 crore in the manufacturing segment in June were a 48% decline from the Rs 1.6 trillion in March and a 66% decline from the Rs 2.5 trillion seen in June 2022. June marked the lowest value of quarterly manufacturing announcements since December 2020.

The decline is less severe when the pre-pandemic period is taken into account. Manufacturing announcements in June 2019 were worth Rs 0.4 trillion, down from Rs 0.9 trillion in June 2018.

However, the announcements have risen significantly after 2020 with June 2021 seeing new projects worth Rs 3.2 trillion.

Numbers have also been rising when considered on a rolling basis over the past four quarters. This eliminates any seasonal factors involved in announcements, as all four quarters of the year are considered.

Manufacturing investments crossed Rs 10 trillion on a rolling four-quarter basis in March 2022 when they came in at Rs 11.3 trillion. This is the first time that this has happened in the CMIE data going back to 2009. It touched a high of Rs 16.7 trillion for the four quarters ended December 2022. The latest number for the four quarters ended June 2023 was Rs 11.7 trillion.  (KNN Bureau)