Investment climate in India not-broad based, reduced uncertainty needed: Bank of Baroda

The investment scenario in India is one of cautious movement in some sectors and not broad-based, the Bank of Baroda said in a report.

According to the bank report, it will take the next few quarters to gauge the private investment mood.

The higher interest rate scenario and inflation amidst continued global political uncertainty will be factors that will drive the pace of investment in the coming months, it added.

Investment climate in India in Q1FY23 started on a weaker tone with data pointing towards sharp drop in new project announcements relative to Q4FY22.

The decline was broad-based but the sharpest drop was visible in the manufacturing sector.

However, compared with the other years, Q1FY23 announcements were higher than those in 2019, 2020 and 2021, the report said.