The manufacturing sector witnessed a 460% jump in FY22 as against 2019-20.
New investment and capex announcements by the private sector saw a 145% year-on-year rise in FY22 and 150% increase over FY20.
As per the report, while the increase was aided by mega project announcements especially in the steel sector, the number of projects announced also increased by 80% 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 saw an increase over FY21, it said that compared to FY19, the overall tendering activity which is primarily for government orders, has been “flattish” indicating lower levels of activity in the next few months from an award perspective.
March witnessed broad-based improvement in indicators (including diesel, petrol, electricity demand, container volumes and railway freight) compared to February and on the year-on-year basis.
“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 remained strong in February at $9.4 billion, up 33% year-on-year. The monthly engineering goods exports data was includes to help track the impact and progress in manufacturing activity from the various government schemes including production-linked incentive scheme, according to the report.
