Will we see a capex revival?

Samar Srivastava
Published: Mar 14, 2019 02:59:51 PM IST
Updated: Mar 14, 2019 03:44:56 PM IST

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.

Will we see a capex revival?Image: Shutterstock

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.

Will we see a capex revival?

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(This story appears in the 29 March, 2019 issue of Forbes India. To visit our Archives, click here.)

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