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.
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