Recent data from the RBI showed a rising capacity utilisation rate in manufacturing. But the inventory-to-sales ratio is significantly higher compared to pre-pandemic levels. This disparity between rising capacity utilisation and persistent inventory levels perhaps indicates that consumption revival at scale is slower than expected, which may not encourage corporations to immediately start investing in a big way. Besides, India's manufacturing sector has a higher level of spare capacity compared to major economies such as Brazil and the European Union, underscoring the existing room for expansion in production if demand recovers. But it is too early to say a broad-based private sector revival is on the way. The top edit explains why here
In other views:
The second edit points out that without significant investment, most developing countries are in danger of falling short of their sustainable development goals. Read it here
K P Krishnan argues that Parliament needs to institute oversight mechanisms for regulators who oversee markets without compromising their integrity. Read it here
Amit Kapoor & Bibek Debroy assess Budget 2024’s aspirations for urban development. Read it here
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