Trade uncertainties continue to weigh on pvt projects

September was the fourth quarter in a row where projects dropped on a rolling-basis

- SACHIN P MAMPATTA

The private sector appears to have retreated more from investments amid the ongoing uncertainties around trade and other issues than it did during previous disruptions such as the Covid-19 pandemic.

Investments typically involve the setting up of new factories and other initiatives. Companies dropped plans worth ₹14.3 trillion in investments on a rolling four-quarter basis in September, according to data collated from the Centre for Monitoring Indian Economy (CMIE). This marks the fourth quarter in a row where dropping projects on a rolling basis is higher than the peak of around ₹13.4 trillion in dropped projects recorded in March 2019. The figure during the June 2025 quarter was ₹13.4 trillion worth of dropped projects. The September figure is higher than any of these quarters and also the highest in data going back to 2011, which covers periods such as the introduction of the goods and services tax (GST) and demonetisation.

The value of government dropped projects has declined during this time, suggesting that the government is following through on its projects even as the private sector has dialled back.