India Inc's capex frontier: When will companies start spending big time?

The economy is growing and capital markets are buoyant. A look into why companies aren't spending enough

The Indian economy is now the toast of the world, with one of the highest economic growth rates among major economies. The improvement in India’s headline GDP comes at a time when major global economies are experiencing an economic slowdown due to factors like monetary tightening by central banks, higher inflation, supply-chain disruptions and ongoing wars in East Europe and West Asia.
 

According to data from National Statistical Organisation (NSO), India’s gross domestic product (GDP) at constant 2011-12 prices expanded by 8.4 per cent year-on-year (Y-o-Y) in the October-December quarter (Q3) of 2023-24 (FY24), an improvement from 8.1 per cent