Chetan Ahya, Chief Asia Economist, Morgan Stanley, says that “during 2003-2007, we had seen the investment to GDP ratio go up from the trough of around 28% to the peak of 39% by CY2007. In this cycle, something similar is happening. Investment to GDP is troughing at 29% in 2020 and 12 months ended March … Read more
India has been the fastest-growing major economy for the third successive year. Despite global headwinds, including geo-political realignment, India’s economy would continue its strong and resilient growth of 6.7% in FY 2024 and 6.2% in FY 2025. The first Advance Estimates of National Income 2023-24 placed macro-economic growth at 7.3% in FY 24 vis-a-vis 7.2% … Read more
Given the significant impetus the government has given to ‘Make in India’ through measures like production-linked incentive schemes and corporate tax cuts, continued capital investment remains critical. “A revival of the capex cycle is at the top of the government’s agenda, and the same is likely to get thrust in the current budget, in our … Read more
Buoyant corporate sales, waning input cost pressures and rising investments in fixed assets are heralding the beginning of an upturn in the capex cycle in India that will speed up growth momentum in the economy, a Reserve Bank of India article said on Tuesday. The balance of risks is increasingly tilted towards a darkening global … Read more
The past two years have seen subdued capital spending by the private sector as well as the government owing to the pandemic and lockdowns. This is now expected to change. Even the RBI is expecting a revival in the capacity expansion (capex) cycle. Lately, we have witnessed major capex announcements across sectors. Private capex is … Read more