Reliance Industries to Lift India’s Industrial Investment Statistics in 2019
In contrary to the present gloomy environment and market uncertainties, according to a recent report by the Department for Promotion of Industry and Internal Trade (DPIIT), 2019 recorded a 46 percent hike in industrial investments than the previous fiscal year. This has happened essentially on the back of Mukesh Ambani’s Reliance Industries’ which took a big leap in December 2019 as the company’s over one and a half dozen chemical manufacturing projects in Vadodara in December contributed to a seven-fold rise in industrial projects in the country. As per the DPIIT data, the industrial projects worth 17.9 trillion took place in 2019 of which chemicals sector contributed about 82 per cent to the industrial investments at Rs 14.7 trillion. The company commenced production of chemicals like Low-Intensity Polyethylene, Acrylic Fiber, Poly Vinyl Chloride (PVC) and Paraxylene in this year. RIL came up with its Dimethyl Terephthalate and Carbon Fixed Oxipan facility in Gujarat and also invested in Kanoria chemicals of Andhra Pradesh for Formaldehyde. This is in sharp contrast to the National Statistical Office’s (NSO) evaluation according to which there has been a decline of 0.6 per cent in the country’s gross fixed capital formation (GFCF) in 2019-20. Some analysts also suggest that at times, companies report their production trials so as to support their balance sheets before they are completely into production.