| dc.description.abstract | An attempt is made in this paper to forecast investment in the private corporate sector for 1974, by
using the data available with the three leading term-lending institutions. Most relevant, in this context,
is the time-phasing of capital expenditures on the projects sanctioned by these institutions in the current
and in the previous years.
Since there is at present a long time-lag in obtaining and analysing the data on company finances for
estimating the capital formation in the corporate sector, our method offers a way oft by providing —
within the end of a year — an indication of the direction and quantum of investment in the corporate
private sector in that year.
Even after allowing for price changes, the total capital expenditures by the corporate sector in 1974
world be higher than those in 1973. The new commitments made in 1973 and in early 1974 indicate that
investment in certain key industries may however lag behind. Unless there is a dramatic change in the investment
climate during 1975 itself the picture for 1975, moreover, is not encouraging. | |
