Private sector capex has remained soft for years now, barring spending by a few large companies. Last year’s coronavirus outbreak further depressed India Inc.’s plans to spend on increasing capacity as demand for goods plunged. Business momentum recovered sharply in June-July, capex plans are back on the table with capacity utilisation for micro, small & medium enterprises (MSMEs) at 70-80%, said Avneesh Sukhija, analyst, BNP Paribas. Among companies that have announced new spending plans include JSW Paints, a part of the JSW group. Analysts expect capex revival in India to be aided by marquee government projects such as the bullet train, highways and urban infrastructure.

Source: Mint August 08, 2021 19:06 UTC