Private sector activity in India is in a ‘slow lane’ but a combination of higher public spending and FDI inflows are expected to boost momentum in this space in coming months, says a DBS report. As per the global financial services major, India's growth this year is likely to be primarily driven by private consumption and to a lesser extent public spending, while private sector activity is yet to recover.
“Higher public investments (helped by off-budget funding) and FDI inflows are expected to crowd-in private sector interests next year,” DBS said. Economic think tank CMIE, stalled projects as a percentage of projects under implementation remained high at 12.3 per cent in the April-June quarter.