ASI data shows contraction in investment in 2013-14

NEW DELHI: India’s investments across various industry segments contracted in 2013-14, a government survey revealed.

The gross capital formation, an indicator of investments, fell 1.08% in 2013-14 to Rs 3.53 lakh crore from RS 3.57 lakh crore in 2012-13, the Annual Survey of Industries (ASI) provisional data released by the Ministry of Statistics and Programme Implementation showed.

The survey is the principal source of industrial statistics and covers all factories employing 10 or more workers using power and those employing 20 or more workers without using power.

The total number of factories increased 1.1% in 2013-14 while the number of workers employed there rose 3.7% at 1.04 crore from 1.005 crore in 2012-13.

These factories’ profits saw a 2.1% on year increase to Rs 4.53 lakh crore from Rs 4.44 lakh crore.

India’s economic growth rate for 2013-14 was revised upwards to 6.9% last year for 2013-14, as against 4.7% estimated earlier, after the government updated the base year for measuring national accounts. The Gross Domestic Product ( GDP) growth rate for 2013-14 had gone up following adoption of the new series with base year 2011-12. The rate of expansion was estimated at 4.7% under the old series that had 2004-05 as base year.

The same survey showed that addition in stock of finished products declined sharply by 56% in FY14 while rental costs rose 6.9%.