Andhra Pradesh, Punjab see nearly 40% rise in fixed assets in 2022-23

Of the 19 major states for which data was considered, eight saw their assets rise by over 20 percent, while four—Kerala, Delhi, Odisha, and Rajasthan—witnessed their asset value per establishment decline.

The net addition to fixed assets over the last 365 days more than doubled to Rs 12,349 per establishment compared with Rs 5,266 during this period.

The rise was 10 times for Andhra Pradesh and nearly eight times for Punjab.

Bihar witnessed a 50 percent drop in its net addition during this period.

Andhra Pradesh’s and Punjab’s informal entities witnessed a faster addition to their loan books than the national average, with outstanding loans per establishment rising 53.8 percent and 234.6 percent, respectively, compared to a 34 percent increase for the country.

A comparison with the data from National Accounts shows that growth in fixed assets was lower than private non-financial corporations.

In FY23, gross capital formation on machinery and equipment rose 18.2 percent for private non-financial corporations.

Punjab and Haryana’s enterprises had another problem with their interest burden per enterprise more than doubling during this period.

The government has been trying to spur capex spending by the private sector by ramping up investments in the infrastructure.

Capital spending was up nearly 30 percent in FY24 compared with 24.8 percent in FY23.