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Private sector capex cycle recovery still looks dodgy

An RBI report finds that investment intentions of Indian private sector companies remain sluggish as reflected by lower numbers of new announcements and completions of projects

September 22, 2021 / 08:50 AM IST
Private sector capex cycle recovery still looks dodgy

(Representative image)

Notwithstanding the ongoing economic recovery, there is still some scepticism on the recovery in the private sector capital expenditure cycle. A detailed article in the central bank’s September bulletin says the pandemic has “adversely impacted appetite for new projects” during 2020-21 and also posed impediments to timely completion of pipeline projects. Clouding the outlook is data on phasing plans (schedules from project commencement to completion) for 2021-22 relating to projects in the pipeline that indicate persisting near-term risks to the...

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