Capex’s speed will not stop in India
In India, investment from the government and private companies i.e. capital expenses i.e. Capital will increase in the coming times. J.P. Morgan Executive Director of Atul Tiwari said that orders from electricity, defense and middle East are special reasons, which will speed up investment. He said that many people are worried that investment may decrease due to GST reforms and people will spend more on their own needs, but this will not happen. He believes that according to India’s economy, the growth of capex will be around 10 percent.
Balance sheet of private companies strong
Atul Tiwari especially talked about the power sector, where private companies are investing a lot of money in areas like thermal, solar and electricity transmission. Because this money is coming from its funds of private companies, the process of investment will remain sustainable. This will keep the hopes of development in the power sector and work on big projects will continue.
More amount for capex in government budget also
This year, the government has decided to increase investment in its budget. For this, a target has been set to increase the capex from 10 to 11 percent. The figures that have come out of the beginning of the year are also showing that the investment graph was good in the first three months. This means that the government has accelerated spending money.
Permanent expansion of capex in defense sector
As far as the sectors are concerned, both electricity and defense will remain the areas of big investment in future. The government’s emphasis to strengthen the defense sector and the scheme of self -sufficient India has put huge capital here. In the power sector, investment is continuously increasing both renewed energy and thermal.
New orders increased from middle East countries
Talking about the international market, India is getting good orders from the countries of Middle East. Earlier this work was mostly done by Saudi Arabia, but now big orders are coming from other countries like Qatar, Kuwait. Atul Tiwari said that it is clear in the order book of companies of big names that India’s hold in many countries of Middle East is getting stronger.