One of the many challenges that finance minister Arun Jaitley has to overcome in his budget on Feb. 28 is restarting the corporate investment cycle.
Mired in a sluggish economy, Indian companies have been conservative with their capital expenditure plans in recent years—and that’s something Jaitley needs to change if he has to deliver on his government’s promise of bringing back robust economic growth.
Although there has been a turnaround in sentiment and India’s stock markets have hit record highs, the ground reality still remains grim nine months after prime minister Narendra Modi took control of the government.
A report by CRISIL, a credit rating agency, reveals that Indian companies are still cautious on fresh investments.
These three charts show why Jaitley’s budget has a lot of ground to cover.
Despite a revival in business sentiment, 49% of the 192 companies polled by CRISIL say that the capital expenditure (capex)…
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