INDIA PRIVATE CAPEX LIKELY TO REMAIN SLUGGISH IN FY27 DESPITE STRONG ECONOMIC GROWTH : REPORT

What happened: A Systematix Institutional Equities report says India's private capital expenditure is likely to stay subdued in FY27 despite strong economic growth, with government spending and themes like energy transition and automation carrying investment. Key numbers: Private capex per enterprise peaked at Rs 2.6 billion in FY23, fell 38% to a provisional Rs Why it matters: The report calls the post-pandemic surge a cyclical rebound rather than a durable capex upcycle, citing weak household demand and savings. It says private capex will lag unless demand and capacity utilization rise.

A Systematix Institutional Equities report says India's private capital expenditure is likely to stay subdued in FY27 despite strong economic growth, with government spending and themes like energy transition and automation carrying investment.

The report calls the post-pandemic surge a cyclical rebound rather than a durable capex upcycle, citing weak household demand and savings. It says private capex will lag unless demand and capacity utilization rise.