India Inc sales growth plunged more than half: Economic Survey
The drop in growth rate is subsequent to the corporate sector cutting investments by nearly Rs 90,000 crore in 2011-12 compared to 2010-11, according to the pre-Budget Economic Survey tabled by Finance Minister P Chidambaram in Parliament today.
"The rate of growth of sales of the corporate sector, particularly in respect of listed manufacturing companies for the private sector, declined from an average of 28.8 per cent in first quarter of 2010-11 to 11.4 per cent in second quarter of 2012-13," the survey said.
On the other hand, there was a significant increase in the rate of growth of interest expenditure with year-on-year growth peaking at 41.5 per cent in second quarter of 2011-12.
With the overall economic performance remaining sluggish, both public and private investment declined as a share of GDP.
Within private sector, investment by the private corporate sector registered a sharper decline.
"Investment by the private corporate sector, at current prices, was lower by nearly Rs 90,000 crore in 2011-12 as compared to 2010-11. Consequently, the share of private corporate investment in total investment declined to 29.8 per cent in 2011-12 as against 36.1 per cent in 2010-11," it said.
However, the magnitude of decline was much larger in 2008-09, when private corporate investment fell by nearly Rs 2,25,000 crore compared to
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