According to UBS Securities India, uncertainty in trade transactions is becoming a major factor preventing investments in India’s private companies.
The report attributes the lack of clarity in global trade to countries, and the pending agreement is a factor in companies’ hesitation to invest in long-term capital expenditures (CAPEX).
“From a business/investor perspective, we believe that trade agreements do reduce business uncertainty – uncertainty is one of the factors that limit investment in private companies in India’s industry,” the report added.
Alliance Finance Minister Nirmala Sitharaman said on Saturday that although the government has promoted government capital at the central and state levels, the company lacks a lot of investment.
“The two powerful tools we can influence the country’s investments are government spending and also the development of attractive policies,” Sitaraman said at an event in New Delhi. “What I’m not saying is what I’m saying, you may follow me.”
“In fact, why should I say COVID? Actually, even if the twin balance sheet problem is solved from 2019. And the corporate tax has been lowered. We can see that the balance sheet of the corporate sector has indeed become healthier. However, observers will become healthier. But today, what observers told me is that I sometimes invest more with the industry’s investment scope, which is within the investment scope, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment, which is their investment
Recently, Ani, president of the Federation of India (CII), spoke to ANI, who refuted the general market sentiment on private capital expenditures and asserted that although perceptions of the slowdown are actually happening in various industries in the country.
Private capital expenditure refers to the investment made by a private sector company in long-term assets such as real estate, equipment or technology.
These capital expenditures are intended to expand the company’s operations.
While acknowledging the slowdown in the past 6-8 months, Memani attributed it to external factors rather than structural issues.
Over the past five years, the country’s private capital expenditure growth has a compound annual growth rate (CAGR) of 19.8% over the fiscal 21 to 25 years.
This growth is driven by key sectors, including oil and gas, electricity, automobiles and commodities.
