Capex May Cross $800 Bn In 5 Yrs

New Delhi: Indian corporates are projected to double their capital spending to $800 billion-$850 billion over the next five years, which will be largely financed by operating cash flows and facilitated by ample domestic funding options, said an S&P Global Ratings report on Tuesday.

Barring execution mistakes or negative macro changes, these investments should boost business scale without driving up leverage, the report noted. “Corporate India is chasing growth opportunities. In our view, Indian companies are well positioned for a growth run. Balance sheets are the leanest they’ve been in years. Companies are investing to meet demand underpinned by favourable government policies and a positive economic outlook,” according to the credit rating agency. Successful execution of plans would enlarge their operational scale, providing lasting cost benefits and business efficiencies.