Investments for fixed asset creation more than halved to Rs. 1.49 trillion ($21 billion) in the year ended March 2018 from Rs. 3.7 trillion seen in the comparable period ended in March 2011. Several projects turned sour in the process, forcing Indian banks to write-off loans and end up with the highest stressed-asset ratio in the world.
RBI said in the study, “the year (2017-18) marked the seventh successive annual contraction in the private corporate sector’s capex plans.” But there is a hope: planned capital spending for the first half of the current fiscal year showed an improvement over the previous year’s pipeline.