New Delhi, Aug 20: Indian companies are expected to allocate $45–50 billion annually for capital expenditure over the next two years as the investment cycle picks up momentum on the back of robust corporate earnings, according to a Moody’s Ratings report released on Tuesday.
Moody’s expects Indian companies to invest in new capacity to meet increasing demand for consumption goods, with a large proportion of their capex being funded through internal cash flows. Investments to increase vertical integration and achieve net zero targets will also drive up investments, the report states.
“Capex by corporate sectors in India and Indonesia will remain high over the next two to three years. Overall capacity utilisation for the manufacturing sector in both countries is already quite high, while consumption continues to grow on the back of population growth and a favourable demographic profile,” the Moody’s report states.
