Indian corporates may double capex to $800 billion by FY30: S&P
New Delhi: India’s leading companies are likely to double their capital expenditure over the next five years, with total corporate spending projected to reach about $800 billion by FY30, according to a report by S&P Global Ratings.
The agency attributed the anticipated surge to robust revenue and profit growth, alongside a strong infrastructure pipeline.
“Improving infrastructure, political stability, and lean corporate balance sheets are propelling large expansion plans that will widen revenue bases for Indian corporates,” said Neel Gopalakrishnan, credit analyst at S&P Global Ratings, reported The Financial Express.
He added that supportive government policies promoting domestic self-sufficiency, export growth, and supply-chain development are spurring private-sector investment.
“Our baseline view is that India’s growth momentum will stay strong, and its industrial base and supply chains will get deeper and more efficient,” Gopalakrishnan said.
The report noted that India’s upcoming investment cycle mirrors China’s corporate capex boom of the 2000s, driven by favourable policies and rapid expansion.
However, S&P highlighted that Indian companies may face tighter financing conditions than their Chinese counterparts, which could help them avoid the excessive debt buildup that later burdened many Chinese firms.
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