Private capex has seen steady growth, acceleration may not be imminent
In the latest union budget presentation, the finance minister placed special emphasis on the need to encourage private sector investment. The finance minister highlighted that catalyzing (crowding-in) private sector investments through public capital expenditure is one of the key goals of the government in its endeavor to attain its long term vision “India at 100”. In the past one year there have been some brokerage reports emphasizing that a virtuous private capex cycle in India is on the anvil. Most asset management companies also emphasized on revival of economic cycle led by For example consider the following: 2022: The Year of Capex - IIFL Securities “India is on the verge of a strong capex led growth acceleration, helped by a multitude of factors including a supportive domestic policy environment and a strong commodity cycle. “ “India should see industrial capex pick up in 2022, helped by a pro-business and reforms govt stance, catch up after a long period of underi...