Falling Capex: Is India's Favoured Growth Engine Losing Momentum?

It seems that India's capital expenditure or Capex-the backbone of economic growth-is sliding alarmingly. Capex once led the growth story of industry development and infrastructural expansion; it is slowing down, putting the country on the brink of losing its way in growth trajectory. Experts caution that this downturn would have far-reaching implications for employment generation, GDP growth, and global competitiveness. With private investments drying up and public spending under strain, policymakers are on an urgent call to implement focused reforms and incentives to revive capex. To ensure sustainable economic progress in the challenging global environment, this needs to be done.

 

Source: Market insights, Jefferies report