Corporate investment in 1977: a forecast

Abstract

There has been a substantial pick-up in private corporate investment in 1976 as compared to 1975 Corporate investment in 1977 would be higher than in 1976. It is likely to reach in nominal terms the level attained in 1974, which is the best year so far. However, in real terms the 1974 peak will not be reached. This study entailed an analysis of all the projects sanctioned by the all-India term lending institutions. Capital expenditures incurred on all projects sanctioned by these institutions amounted to Rs 530 crores in 1975. But during 1976 these expenditures are likely to be Rs 637 crores, thus indicating a pickup in corporate investment. Since as of now the capital expenditures likely to be incurred in 1977 are of the order of Rs 512 crores there is every possibility that corporate investment in 1977 would exceed the level reached in 1976. A higher level of corporate investment in current prices does not, however, indicate a rise in investment in real terms.