Will we see a capex revival?

After studying law I vectored towards journalism by accident and it's the only job I've done since. It's a job that has taken me on a private jet to Jaisalmer - where I wrote India's first feature on fractional ownership of business jets - to the badlands of west UP where India's sugar economy is inextricably now tied to politics. I'm a big fan of new business models and crafty entrepreneurs. Fortunately for me, there are plenty of those in Asia at the moment.

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A recent report by Bernstein points to a slow uptick in investments, a process that is likely to accelerate with the election of a stable government. In the last two quarters, there has been an increase in gross fixed capital formation as companies gradually exhaust capacity and get ready to invest for the next leg of growth. The numbers are nowhere close to the capex-led boom in the 2000s and there is likelihood of it slowing down in case of an unfavourable poll outcome.

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(This story appears in the 29 March, 2019 issue of Forbes India. You can buy our tablet version from Magzter.com. To visit our Archives, click here.)

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