India Inc capex grows, but revival in investment cycle unlikely; here's why

A closer look at data reveals that much of the large firms' capex in FY18 was driven alone by Reliance Industries, which has spent roughly Rs 3.31 trillion on capex in the past 3 years

A look at the headline numbers on capital spending by some of corporate India’s largest firms suggests that a revival in the investment cycle may well be underway.

At the aggregate level, capital spending by some of India Inc’s larger firms rose to a staggering Rs 4.63 trillion at the end of 2017-18, up from Rs 3.47 trillion in 2016-17.

However, a closer look at the underlying data reveals that much of the capex in FY18 is driven by a single firm – Reliance Industries Ltd (RIL). In the last three years, RIL has spent roughly Rs 3.31 trillion on