Companies should increase private investment: Anand Mahindra
Private investment as a percentage of GDP has been falling to a worrisome level from 2011-12 onwards, says Anand Mahindra
Private investment as a percentage of GDP has been falling to a worrisome level from 2011-12 onwards, says Anand Mahindra
Expenditure on public capital asset formation in the three preceding financial years is almost 71% over and above funds worth ₹13.28 lakh crore spent by the Centre between FY18 and FY22.
The investment rate, or the proportion of GFCF in GDP, leaped to 32.4% in the December quarter, up from 31.8% in the same quarter the previous year.
"We are now seeing early signs of private capex gaining momentum," says Morgan Stanley.
Numbers show fiscal consolidation driven by upbeat tax collections and lower borrowings. Focus on capital expenditure and financial inclusion continues.
Higher capex stabilised and drove India's economic growth
The central government’s capex is projected to be in the range of 7-8% in FY25, versus 25% over the last 4 years.
With the 2024 Lok Sabha polls around the corner, will the capex bandwagon still continue to roll?
This is the highest level of asset creation in the Indian economy since 2009.
The Aditya Birla Group company proposes to increase its cement capacity by another 21.9 MTPA with a mix of brown field and green field projects.