Page 4 - Capex

India's economic growth rate resembles that of 2003-07, says Morgan Stanley

India's current world-beating economic growth rate on the back of an investment boom resembles that of 2003-07 when growth averaged more than 8 per cent, according to economists at Morgan Stanley. In a report 'The Viewpoint: India - Why this feels like 2003-07', Morgan Stanley said after a decade of investment to GDP steadily declining, capex has emerged as a key growth driver in India. "We think the capex cycle has more room to run, therefore the current expansion closely resembles that of 2003-07. The current cycle is driven by investment outperforming consumption, public capex leading initially but private capex rapidly catching up, the urban consumer leading consumption followed by catch-up in rural demand, market share in global exports rising and macro stability risks kept in check. "We think the defining characteristic of the current expansion is the rise in the investment-to-GDP ratio. Similarly, in the 2003-07 cycle investment to GDP rose from 27 per cent in F2003 (fiscal .

20% of Budget is towards capex, says Delhi Finance Minister Atishi

She tells that the Centre by treating the Union Territory unfairly in devolution of central taxes was killing the goose that lays golden eggs

India Inc pushes capital expenditure as capacity utilisation nears 75%

Reliance Industries is also investing in a battery giga factory in the new energy business vertical that will be ready by 2026 even as its capex in Reliance Jio in 5G rollout is almost over

Decoding GDP numbers: Consumption sluggish, govt capex powers investment

According to the latest gross domestic product (GDP) data released by the National Statistical Office on Thursday, private final consumption expenditure (PFCE) grew at 3.5 per cent in the December qtr

Telcos made Rs 10,000 crore extra capex to support large apps: COAI

Telecom operators are estimated to have spent an additional Rs 10,000 crore in 2022-23 to support traffic generated by large entertainment and communication apps, according to an estimate of telecom industry body COAI. Cellular Operators Association of India, Director General, SP Kochhar told PTI that the infrastructure support provided by telecom operators to top 4-5 apps large traffic generator apps also corresponds to their revenue growth and in the absence of fair share norms for large apps, the government has lost about Rs 800 crore revenue in 2023 alone. He said that the industry body has submitted a white paper to the Ministry of Finance in this regard in January. "The additional capex required to provide the infrastructure to carry the LTG-related data traffic for the year 2023 alone amounts to around Rs 10,000 crore. Accordingly, the proposed fair share to TSPs on the amount would have resulted in enhancing AGR-related licence fees and USOF levies (combined 8 per cent of A

Brokerages bullish on Vedanta's prospects amid concerns over group's debt

Capex in aluminium and zinc should result in incremental cash flow of $1 billion-plus per annum once the plants ramp up fully, which could be in H2FY26

Private capex in India poised for take off: Mahindra Group CEO Shah

Private capex in India is poised to take off with the country's "amazingly strong" growth so far, led by government spending, set to attract investments, Mahindra Group CEO and Managing Director Anish Shah said on Monday. The current lower demand from rural markets is not a cause for worry as it is a part of India's growth story, although the country has witnessed a K-shaped recovery after the pandemic, said Shah while speaking at the News9 Global Summit. In the last few years, it has essentially been the government that's really driving the economic growth till this point of time, said Shah, who is also the President of industry body Ficci. On the reasons for lack of private investment, he said, "There are multiple factors. We have gone through a time when there are huge amounts of uncertainties around the world. Suddenly, when you feel things are back and stable again, something else happens. So, that has resulted in companies pulling back to some extent." However, he said, "If y

Recalibrating spend

RBI paper redefines the capex-revenue debate

Hindalco Industries subsidiary Novelis files draft papers for US IPO

Novelis will not receive any proceeds from share sale

India Inc must get its act together on capex: RBI's state of economy report

Unsecured loans rise despite higher risk weighting

Cairn to double annual capital expenditure to $1 billion for 5 years

The oil and gas major plans to kick-start 12 projects in the country in FY25

Expectations of fresh round of private capex to fuel growth: RBI Bulletin

The Indian economy continues to sustain the momentum achieved in the first half of 2023-24 and expectations of a fresh round of capex by the corporate sector is likely to fuel the next leg of growth, the Reserve Bank Bulletin said on Tuesday. "The likelihood of the global economy exhibiting stronger than expected growth in 2024 has brightened in recent months, with risks broadly balanced," said an article on 'State of the Economy' published in the bulletin. It further said the Indian economy continues to sustain the momentum achieved in the first half of 2023-24, going by high frequency indicators. "Expectations of a fresh round of capex by the corporate sector is likely to fuel the next leg of growth," said the article authored by a team led by RBI Deputy Governor Michael Debabrata Patra. The central bank has projected the GDP growth for 2024-25 at 7 per cent. On inflation, it said consumer price inflation came off its November-December spikes in its January 2024 reading, while c

Nifty hits new high as winning streak extends to 5th day; Sensex up 282 pts

Sensex still 620 points shy of record close; India market cap nears Rs 400 trillion

Bidding pipeline in West Asia remains very strong: Larsen & Toubro

Analysts tracking L&T noted the company was an L1 bidder for a $2.5 billion contract related to this expansion project

Emphasis on capex is the highlight of Interim Budget: FM Sitharaman

She also informed the Rajya Sabha that the unemployment rate in rural areas has decreased from 5.3 per cent in 2017 to 2.4 per cent in 2023

High capex, railway corridors, focus on seafood to boost India's exports

Announcements of measures in the interim Budget such as high capex, three major economic railway corridors, and a target to increase seafood exports would help boost the country's overall outbound shipments, exporters say. The government has proposed to step up the implementation of Pradhan Mantri Matsya Sampada Yojana (PMMSY) by enhancing aquaculture productivity from existing 3 tonne to 5 tonne per hectare, and setting up five integrated aqua parks. CII National Committee on Exports and Imports Chairman Sanjay Budhia said that the announcement of a Rs 1 lakh crore corpus for innovation with a 50-year interest-free loan for long-term financing, refinancing at no or nil interest rates will encourage the private sector to scale up R&D and innovation in sunrise domains and new age technologies. "There is a reinforcement of continued thrust on exports. Announcement of three economic corridors, multi-modal connectivity, emphasis on additional airports, etc. and doubling the target of .

Mukesh Ambani to Gautam Adani: Big guns firing on the capex front

In the Interim Budget speech on Thursday, Union Finance Minister Nirmala Sitharaman said "private investments are happening at scale"

SAIL's IISCO steel plant may infuse Rs 20,000-24,000 cr in Bengal

Steel Authority of India Ltd (SAIL) may invest Rs 20,000-24,000 crore in setting up a four-million-tonne greenfield steel plant at its IISCO plant in West Bengal, officials said. It plans to produce high-end flat hot rolled coil (HRC), including for automotive applications, at its existing site at Burnpur and has received in-principle approval, they added. "We have received in-principle approval for the greenfield plant which will produce flat HR coils, targeting grades like API (American Petroleum Institute) and automotive among others," IISCO steel plant director-in-charge Brijendra Pratap Singh told PTI. "Board approval is still awaited, but expected shortly," he said. Singh added that the exact capex and investment details would be finalised after the tendering process. After numerous delays and discussions regarding potential foreign partners for a joint venture, SAIL has finally decided to undertake the flat steel expansion project independently, likely relying on imported .

Interim Budget 2024: 'Prudence has taken precedence over populism'

Backed by robust collections in both direct and indirect taxes and a growing domestic demand, the finance minister asserted a strong commitment to pursuing the path of fiscal consolidation

Decadal perspective of Modi govt: Crowding in private investments

Though better than before, cost overruns remain a concern. Higher allocations for capital expenditure in FY25 despite the emphasis on prudence