GLOBAL SLUMP : WHY CORPORATE CAPEX IN INDIA IS UNLIKELY TO RISE JUST YET

What happened: An analysis concludes India's corporate capex, stable at 14-15% of GDP for a decade, is unlikely to pick up soon due to unfavourable global policy uncertainty, government capex and profit growth. Key numbers: Corporate capex 14-15% of GDP, down from 17-18% post-2008 and a 21% peak in 2007-08. Total investment-to-GDP averaged 33%. Why it matters: The author argues weak corporate capex is not unique to India, and that any investment pickup would widen the current account deficit given low household savings, making investment efficiency the priority.

An analysis concludes India's corporate capex, stable at 14-15% of GDP for a decade, is unlikely to pick up soon due to unfavourable global policy uncertainty, government capex and profit growth.

The author argues weak corporate capex is not unique to India, and that any investment pickup would widen the current account deficit given low household savings, making investment efficiency the priority.