Govt spending to push private capex higher after multi-year deleveraging

Orders, mostly from the govt, worth $356 bn expected in the next two years

After witnessing a subdued credit growth in their corporate loan books till June quarter, Indian banks are expecting a revival in the next few quarters with the Indian government giving fresh orders to Indian companies. Bankers said India is at the cusp of a multi-year capex cycle, similar to that seen in FY03-12 with the Indian Government awarding $356 billion worth of orders in the next 2 years. 

Banks said Indian companies -- after deleveraging their books in the last two years and reducing their finance costs substantially – are looking to expand.  “The investment cycle is expected to get