India Inc. Capex Still To Return To Pre-Covid-19 Levels; Recovery In Select Sectors: Nirmal Bang

Steel is melted at a furnace in the steel melting shop at a Jindal factory in Haryana. (Photographer: Udit Kulshrestha/Bloomberg)

India Inc. Capex Still To Return To Pre-Covid-19 Levels; Recovery In Select Sectors: Nirmal Bang

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Nirmal Bang Report

Building on our India capex meter, we assess the capex pipeline since the start of Covid-19 and in the previous two years - FY19 and FY20.

Capex announcements by the private sector, central and state governments during April 2020-July 2021 have been below the levels seen in FY19 and FY20.

To be fair, the slowdown in capex began well before Covid-19 struck, but the decline was exacerbated by the pandemic.

Private sector capex announcements slowed from Rs 12.2 trillion in FY19 to Rs 8.4 trillion in FY20 and further to Rs 6.6 trillion post the pandemic (April 2020-July 2021).

Private sector capex is largely concentrated in select sectors, primarily metals (~35%), electronics (~14%) and data centres (~9%).

Click on the attachment to read the full report:

Nirmal Bang India Capex Pipeline -Thematic Report - 24 August 2021.pdf


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