Mahesh Vyas of CMIE says: "A large part of the new investment comes from one big investment show in Tamil Nadu and when that happens there is a blip. If one were to take it out, the picture does not look too good."
Mahesh Vyas, MD and CEO of CMIE, says it is not practical to expect rapid implementation of road projects, especially in a country where there are issues such as land acquisition.
In an interview to CNBC-TV18, Mahesh Vyas, managing director and chief executive officer of Centre for Monitoring the Indian Economy (CMIE) says, new project proposals have declined significantly.
Like many others, CMIE also has scaled down India's FY12 growth forecast to 7.1% against 7.8% projected earlier. With the dismal October IIP data, a further cut in GDP projections is likely, he added.
Sticking true to the fears of an economic slowdown, the Centre for Monitoring the Indian Economy (CMIE) expects to see a high number of project delays this year. However, it doesn't see GDP growth down to 7% levels.
Gold demand in India will continue to grow and is likely to reach 1,200 tonnes or approximately Rs 2.5 trillion by 2020, at current price levels, according to a research by World Gold Council (WGC).