According to Goldman Sachs, the new investment cycle and ordering activity increased sharply in FY22, and the manufacturing sector, which has trailed for several years, increased 210 percent compared to 2020-21.

In comparison to 2019-20, the manufacturing sector increased by 460 percent in FY22.

Private-sector investment and CAPEX announcements increased by 145 percent year on year in FY22 and by 150 percent over FY20.

According to the report, while megaproject announcements, particularly in the steel sector, supported the increase, the number of projects announced climbed by 80 percent in FY22.

“The growth was contributed by both traditional sectors like petrochemicals, steel, cement, and automobiles, and new-age sectors like electronics, e-vehicles, data centers,” Goldman Sachs said in the report.

Contract awarding grew 55% on year in FY22, and the manufacturing sector saw an increase of almost 135% as against the previous fiscal. “Growth in awards for Infra has been decent as well, primarily driven by higher activity in the roads sector,” it said.

While tenders increased in FY21, it stated that as compared to FY19, overall tendering activity, which is mostly for government orders, has been “flattish,” indicating reduced levels of activity in the coming months from an award standpoint.

Indicators (including diesel, gasoline, power usage, container volumes, and railway freight) improved broadly in March compared to February and year on year.

“The relatively strong March data drove low-to-mid-single-digit on-year growth on average for 4QFY22, despite the impact of Omicron and a tough base — a positive for our cement, EPC (engineering-procurement-construction), and port companies,” the investment banking company said.

Engineering goods exports were $9.4 billion in February, up 33 percent year on year. According to the study, the monthly engineering goods exports data was included to help track the impact and development in manufacturing activities from different government programmes, including the production-linked incentive plan.

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