India Inc hesitant to invest as doubts remain on demand recovery: Analysts

They say high commodity prices, geopolitical uncertainty, and uneven consumer demand may have prompted firms to defer capex plans

India Inc is not confident of the durability of the demand recovery that together with external headwinds is not encouraging firms to increase investments.

Though private final consumption expenditure (PFCE), denoting demand in the economy, rose 13.5 per cent in the first quarter of 2022-23 (FY23) and was almost 10 per cent higher than the corresponding period of pre-Covid FY20, businesses are not certain that demand will continue to gather momentum as the retail price inflation remained above the Reserve Bank of India’s threshold for the eighth consecutive month in August.

“The confidence of the private sector on the sustainability