Pandemic, commodity price shock hurt pvt capex: CEA

Chief Economic Adviser V Anantha Nageswaran today said pandemic and global commodity price shock hindered private capital expenditure, while also expressing hope that the country's private capital expenditure and credit cycle will stage a comeback as the uncertainties dissipate.

Addressing a press conference on Economic Survey, Nageswaran said, "In the last few years, we have faced a global pandemic which naturally raised the uncertainties. And barely had that got over we got the commodity price shock. Naturally business will be relatively cautious."

"But in spite of that, if you look at the data for the first half of the financial year, FY21, FY22 and FY 23, private listed companies' investment numbers in the nominal rupee terms have been increasing. Capital investment by the private corporate sector is beginning to kick in despite several shocks coming in one after the other. Once these shocks dissipate, I do expect India's credit and capex cycle to gather even more steam," said Nageswaran.