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.
