Investment activity hits historic low in FY21 amid Covid-19 pandemic

This is because of the lockdown in Q1; sharp pick-up in Q4 may not sustain, say experts

Topics
Investment | Coronavirus | India Inc

Dilasha Seth  |  New Delhi 

Investment activity revived to a seven-quarter high and demand recovered to a five-quarter high in the fourth quarter of financial year 2020-21 (Q4FY21), but this may not sustain because of the impact of the second wave of Covid-19 on rural demand and corporate spending, feel economists.

The better-than-expected economic growth in Q4 was largely led by a spike in government spending and a double-digit growth in investment activity, owing to a low base. However, for the whole of FY21, growth in investment and consumption touched a historic low as the country grappled with the impact ...

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, June 01 2021. 02:09 IST
RECOMMENDED FOR YOU
.