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Investment cycle gaining momentum, envisaged capex to jump over 80%: RBI
Investment activity is gaining momentum and the envisaged capital expenditure is set to jump by over 80 per cent to Rs 1.71 lakh crore in the current fiscal, according to an article by Reserve Bank of India (RBI) staffers.
The article by Shreya Bhan, Rajendra N Chavhan and Rajesh B Kavediya, which was published on Thursday, said improvement in capacity utilisation of the manufacturing sector, pick-up in credit demand and improving consumer sentiments are helping the capex cycle.
Cleaning up of balance sheets by both corporates and banks makes room for upping lending activities, the article, which draws from the RBI's data from banks,
The paper does not represent the official position of the central bank.
"The phasing profile of the envisaged capex, based on the pipeline projects finance... suggests that the envisaged capex increased significantly to Rs 1,71,568 crore in 2023-24 as against Rs 94,876 crore in 2022-23," the article said.
In 2022-23 (FY23), infrastructure -- including