Mfg investments fall despite policy push

New Delhi: Notwithstanding the government’s efforts to revive industry, investment in manufacturing declined by 28 per cent in the calendar year 2022. Last year, 916 Part B filings of industrial entrepreneurial memorandums (IEMs) with investment of Rs250,064 crore reported implementation as compared to 812 IEMs with investment of Rs347,978 crore in 2021, official sources told Bizz Buzz. This was a dip of 28 per cent.

In terms of proposed investment, as indicated by Part A filings of IEMs, the decline was even steeper, almost 45 per cent. The figure came down to Rs424,101 crore in 2022 to Rs771,428 crore in 2021.The proposed 1,489 projects in 2021 were expected to generate 1,285,225 jobs. The estimate came down to 367,174 jobs from 1,185 projects of 2022. This was a decline of more than 71 per cent.

During December 2022, 120 IEMs were filed with proposed investment of Rs15,900 crore. Maharashtra, Gujarat, and Karnataka were the leading states in terms of proposed investments of Rs3,116 crore, Rs1,930 crore and Rs1,764 crore respectively during December. Investment intentions reflected preference for metallurgical industries, electrical equipment, and food processing industry with proposed investments of Rs2,108 crore, Rs1,861 crore and Rs1,664 crore, respectively.

As far as action investment is concerned, 64 Part B filings of IEMs with a total investment of Rs 28,432 crore were reported during December. In comparison, there were 71 similar IEM with a total investment of Rs29,603 crore in December 2021.

All industrial undertakings exempted from the requirements of industrial licensing under Industries (Development & Regulation) Act-1951, and having an investment in plant and machinery of Rs50 crore and above, or a turnover of Rs250 crore and above are stipulated to file IEMs. These include existing units and new undertakings.