Business Standard

A measure of the economy: companies, capex and a hint of concern

When demand is uncertain; the biggest private enterprises seem better able to build factories, expand resources and create jobs.

Companies
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Illustration: Ajay Mohanty

Sachin P Mampatta Mumbai
The first advance estimates of national income released earlier this month shows that overall capital expenditure (capex) may finally be at levels seen two years ago. But there are worries that private sector capex hasn't picked up as much as it was hoped.

Private sector capex is important for it is associated with economic growth and employment. Companies invest in expanding production capacity--by building new factories for example--when they reckon that existing resources will not be enough for demand. Asset addition has noticeably slowed down in the coronavirus pandemic by that measure, shows an analysis

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First Published: Jan 20 2022 | 5:07 PM IST

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