Business Standard

Capital expenditure crucial as inflation may hit India Inc plans: Icra

Icra said it expected capacity utilisation to reach the critical threshold of 75 per cent required to trigger broad-based capacity expansion, only by the end of the current calendar year

Capital expenditure
Premium

Icra’s Nayar said there were positive signs, with private sector project announcements touched an 11-year high in FY22, suggesting early signs of a pick-up in private sector investment activity

Arup Roychoudhury New Delhi
The current geopolitical conditions and the resultant spike in commodity prices could impact profitability of corporates, imparting some caution in the private sector capital expenditure and investment plans in the medium-term, ratings agency Icra said on Thursday. This means that capex plans of central and state governments will continue to be crucial.

Icra said it expected capacity utilisation to reach the critical threshold of 75 per cent required to trigger broad-based capacity expansion, only by the end of the current calendar year. “While some green shoots are visible in private investments, protracted geopolitical tensions and elevated commodity prices could constrain the

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Apr 29 2022 | 12:38 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com