India Capex: Not Quite Out Of The Woods But Tide May Be Turning, Says Nirmal Bang
A cashier counts Indian one hundred-rupee banknotes at an Oriental Bank of Commerce branch in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

India Capex: Not Quite Out Of The Woods But Tide May Be Turning, Says Nirmal Bang

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Nirmal Bang Report

We had highlighted in our earlier thematic report that a nascent capex recovery was underway, but there would be stops and starts.

Covid-19 has thrown a spanner in the works, stalling capex for most part of FY21, but the worst is likely behind us.

As we look forward to the next phase of growth, we are launching our quarterly India Capex Meter, examining key indicators, capex determinants and capex intentions and trends.

Going by historical trends, gross fixed capital formation (GFCF) and capacity utilisation generally move in tandem.

While both GFCF and capacity utilisation have bottomed out, capacity utilisation hovering below pre-pandemic levels could potentially act as a drag on growth.

Click on the attachment to read the full report:

Nirmal Bang India Capex Meter -Thematic Report-25 March 2021.pdf


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