New Delhi, Oct 08 (UNI) Hardening of interest rates and continuing financial instability and uncertainty in the Indian economy has sent down industry's capital expenditure (capex) plan in the first quarter of current fiscal by 28 per cent, a study says.
Planned capex dropped by 28.19 per cent to Rs 4,39,247 crore in the first quarter of 2008-09 from the whooping Rs 6,11,704 crore recorded in the last quarter of 2007-08, according to Assocham.
The chamber said interest rates have been hiked four times by the Reserve Bank since the beginning of current financial year to combat inflationary pressures but it has slowed the economic growth.
Yet, Assocham president, Sajjan Jindal said, huge capacity expansion and new plants already underway will give direct and indirect employment to three lakh people in the next three to four years.
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