New, emerging sectors primed for heavy lifting
5 months ago

New, emerging sectors primed for heavy lifting

Live Mint  

A raft of policy initiatives mounted in recent years appear to be ever so gradually stoking private sector capital expenditure. First, growth stability, spillover from government investments in linked sectors, the Production Linked Incentive scheme and subdued commodity prices have meant the contribution of the private sector is cautiously inching up, as evident in the improving share of GFCF from 27.3% in fiscal 2021. Second, this number is still well below the 34.3% seen in fiscal 2012, suggesting a strong push is needed from the private sector to meaningfully lift capex across conventional as well as new-age sectors. The full budget for this fiscal year adds grist to this mill, through several small but relevant impetus to private sector capex, adding to previously announced structural reforms and manufacturing-focused interventions. That means, persistent emphasis on PLI scheme and incentivising newer technology projects — leading to timely operationalisation of domestic capacities in new-age sectors — will continue.

India Cost Capex Bcd Emerging Sectors  support  scheme  emerging  sectors  manufacturing  fiscal  private  heavy  cost  sector  lifting  trillion  primed  capex

History of this topic

Industry needs to up R&D spend, expect govt capex growth to sustain: Ficci
1 week, 2 days ago

Industry needs to up R&D spend, expect govt capex growth to sustain: Ficci

Live Mint  

New Delhi: Businesses need to step up their research and development spending, and the industry expects the government to sustain the growth in budget allocation for capital expenditure as these two would help the Indian industry to become more competitive in global markets, Harsha Vardhan Agarwal, president of Federation of Indian Chambers of Commerce and Industry, and vice-chairman and managing …

Capex support will continue for infrastructure development: Minister Chaudhary
1 week, 3 days ago

Capex support will continue for infrastructure development: Minister Chaudhary

Live Mint  

India's capital expenditure on infrastructure projects such as roads, railways, ports, airports, and telecommunications has been rising steadily over the years, and the government stands ready to make adequate funds available in next year's budget as well to maintain the sector's growth momentum, minister of state for finance Pankaj Chaudhary said on Friday. India aims to become a developed nation …

Private Industrial Capex to Touch Rs 6.7 Lakh Cr in FY28
4 weeks ago

Private Industrial Capex to Touch Rs 6.7 Lakh Cr in FY28

Deccan Chronicle  

Chennai: Private industrial capex is expected to go up 52 per cent from Rs 4.4 lakh crore in FY24 to Rs 6.7 lakh crore in FY28 as India transitions to value-added manufacturing, increases capacity utilization in conventional sectors and attracts green energy investments. As India moves forward, while infrastructure capex is expected to continue to grow, private sector investments are …

Govt plans survey of lagging private capex
2 months, 4 weeks ago

Govt plans survey of lagging private capex

Hindustan Times  

The statistics ministry is planning to conduct a survey of private-sector capital investment going into the economy, which has been lagging government capex but is critical for growth and jobs in Asia’s third-largest economy, a senior official has said. Private sector investment has grown at a slower pace, outstripped by government fixed capital formation, a measure of public spending on …

New private investments dropped over 15% in 2023-24; States led capex growth
8 months ago

New private investments dropped over 15% in 2023-24; States led capex growth

The Hindu  

Fresh investment plans by the private sector fell 15.3% in 2023-24, while foreign investors slashed new outlays by almost a third, dragging down the value of new investment announcements in the country almost 5% from the all-time high of almost ₹37 lakh crore recorded in 2022-23. Manufacturing’s share in new investments, declined from almost 54% in 2022-23 to 33.8% of …

Morgan Stanley on India's economy: Boom like 2003-2007, on cusp of this big push
9 months ago

Morgan Stanley on India's economy: Boom like 2003-2007, on cusp of this big push

Hindustan Times  

India's economic growth rate resembles that of 2003-07 when growth averaged more than 8 per cent, as per Morgan Stanley's report ‘The Viewpoint: India - Why this feels like 2003-07’. Morgan Stanley said that after a decade of investment to GDP steadily declining, capex emerged as a key growth driver in India as “the capex cycle has more room to …

India’s Investment To GDP Ratio To Touch 36 Per Cent In FY27: Morgan Stanley
9 months ago

India’s Investment To GDP Ratio To Touch 36 Per Cent In FY27: Morgan Stanley

ABP News  

India’s current economic growth journey resembles that of the 2003-07 period, when growth clocked an average of over 8 per cent, economists at Morgan Stanley said. Even when oil prices shot up to $145 per barrel in July 2008, the current account deficit only widened to 2.4 per cent of GDP the following quarter,” the report noted. Now that corporate …

Corporate sector capex to fuel economic growth: RBI
10 months ago

Corporate sector capex to fuel economic growth: RBI

New Indian Express  

NEW DELHI: The Reserve Bank of India, in its February bulletin, on Tuesday said the fresh round of capex by corporate sector would likely fuel the next leg of economic growth. As per the apex bank, notable fixed asset growth is seen in oil, gas, and chemicals, while sectors like steel and automobiles lag in fixed asset additions despite strong …

Interim budget 2024-25: Capex raised to 3.4% of GDP despite fiscal consolidation
10 months, 3 weeks ago

Interim budget 2024-25: Capex raised to 3.4% of GDP despite fiscal consolidation

Hindustan Times  

The central government’s capital spending in 2024-25, according to the interim budget will be ₹11,11,111 crore, a number which is more like an auspicious figure than a hard-headed budgetary allocation. Read here: Interim budget 2024-25: Govt stays the course on fiscal consolidation path Fiscal numbers of the second Narendra Modi government speak for themselves. The share of capital spending in …

Sectors linked to infra poised for new investments: CII president
1 year, 6 months ago

Sectors linked to infra poised for new investments: CII president

Live Mint  

NEW DELHI : Confederation of Indian Industry president and TVS Supply Chain Solutions managing director R. Dinesh forecasts a promising investment outlook for infrastructure-related sectors such as cement, steel, and electrical machinery. If I step back and put all these points together, I don’t want to say it will happen tomorrow, but I think that the clear trend is that …

India's public capex may not need to expand at same pace in coming years, says CEA
2 years ago

India's public capex may not need to expand at same pace in coming years, says CEA

The Hindu  

India's public sector capital expenditure will continue, but may not need to expand at the same pace as it has in recent years, the country's chief economic adviser said on Friday. Therefore, it may not be necessary or even healthy for public sector to keep expanding capital investment at the same pace, he added. As private firms start to borrow …

The Indian capex wheel has begun to take a green turn
2 years, 8 months ago

The Indian capex wheel has begun to take a green turn

Live Mint  

Corporate capital expenditure in India is poised for a leap in a new direction—green investments. Industrial capex, which comprised only a fourth of overall annual average capex of about ₹12 trillion in the past five fiscal years, is estimated to have grown at a pace of over 30% in 2021-22, far faster than the compound annual growth rate of 6% …

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