Finance & Economy | News & Insights

“India’s Capex Story”

Published: October 19, 2023
Author: TEXTILE VALUE CHAIN

Key Highlights:

  • The public capex has performed well led by the Centre’s capex which has seen a promising growth of 48.1% YoY in FY24 till August.
  • After a modest performance last year, the State capex has gathered momentum with the April-August period of FY24 witnessing a growth of ~45% as compared to last year.
  • The Centre’s disbursement of conditional interest-free loans tied to actual capex spending has aided in the rebound of the capex cycle by states.
  • Till August, major CPSEs have continued to show good progress in capital expenditure with a growth of 36.6% YoY.
  • India Inc’s investment shows a good recovery in FY23 with total capex rising above pre-pandemic level for the first time.
  • However, recent project announcements show a moderation in capex in H1 FY24.
  • We remain hopeful that the private capex will gather momentum in the upcoming quarters as the conditions continue to remain conducive with improvement in capacity utilisation levels and a deleveraged balance sheet.

India_s_Capex_Story_CareEdge_Report

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