WITH RISING INPUT COSTS, SMALL COMPANIES WILL HAVE TO EXPLORE OPTIONS
A whopping Rs.14.895 trillion is what India needs to pump in the infrastructure for the next five years, says CII in a recent report. The private sector, too, will have to contribute an enormous Rs.600 billion every year, further adds the report. According to RBI’s August bulletin, capital expenditure by the private sector has shown a remarkable growth in FY06, but is expected to increase at a decreasing rate in the current fiscal year, courtesy rising input cost. The aggregate capex of the services industry catapulted from a mere Rs.42 billion in 2004-05 to Rs.196.69 billion in 2005-06, taking the total capex to a record Rs.824.50 billion (an 8% increase over last year). Also, there has been a substantial increase in the project cost & average cost, which primarily hints at two things.
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A whopping Rs.14.895 trillion is what India needs to pump in the infrastructure for the next five years, says CII in a recent report. The private sector, too, will have to contribute an enormous Rs.600 billion every year, further adds the report. According to RBI’s August bulletin, capital expenditure by the private sector has shown a remarkable growth in FY06, but is expected to increase at a decreasing rate in the current fiscal year, courtesy rising input cost. The aggregate capex of the services industry catapulted from a mere Rs.42 billion in 2004-05 to Rs.196.69 billion in 2005-06, taking the total capex to a record Rs.824.50 billion (an 8% increase over last year). Also, there has been a substantial increase in the project cost & average cost, which primarily hints at two things.
For Complete IIPM – Editorial , Please Click on IIPM-Editorial Link
Source:- IIPM-B&E , 2006
An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative
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