Incremental investments, or projects being implemented, saw an uptrend in Q3FY16, reports fe Bureau in Mumbai, citing CMIE data. However, the uptick appears unsustainable since it was driven by a one-off spend by a private telecom player and, moreover, the government is expected to prune capex towards the end of the year so that it can rein in the deficit. Given how stalled projects increased for the second consecutive quarter, albeit at a gradual pace, it’s hard to see any meaningful improvement in the investment climate.
Standard Chartered points out that Rs 10.8 lakh crore of aggregate stalled projects pose a major headwind to any revival.
New announcements slowed in the three months to December, led by the private sector; this is the first slowdown since late 2013. Given capacity utilisation is at around 70-75%, capex will pick up in FY17 only if there’s better visibility on demand and the global economy shows signs of a sustainable recovery.
“In response to a number of inquiries Qualcom has received from various Indian wireless operators regarding the sale of Qualcomm’s BWA spectrum, Qualcomm.