Rekindling corporate investment

To achieve the levels seen in 2008, it is essential to increase corporate productivity

Like farmers gazing at the horizon waiting and praying for the monsoon to arrive, everyone is eagerly waiting for the revival of the corporate capex cycle to accelerate India’s economic growth, which has been in a slowdown mode since 2012. Corporate investment (as a percentage of gross domestic product, or GDP) was 11 per cent in 2022, which is 6 percentage points lower than its peak of 17 per cent achieved in 2008.

What is most baffling is that it has been hovering in this 11-13 per cent range for the last decade or so, despite significant improvements in almost