Urban demand situation may affect firms' capex plans
Business Standard|November 04, 2024
While the financial health of rated companies is expected to remain robust, firms are hesitant to start capital expenditure, RAMNATH KRISHNAN, managing director and group chief executive, Icra, tells Abhijit Lele in a video interview. Volatility in inflation still remains substantial and interest rates are not expected to come down. Edited excerpts.
RAMNATH KRISHNAN
Urban demand situation may affect firms' capex plans

We are in the busy season. Given the growth momentum, what is the assessment about capital expenditure and the outlook?

Expenditure, particularly in the private sector, is yet to go up significantly. Plans are being drawn up and some plans are getting deferred. A few days ago JSW Steel deferred its expansion plants.

Prior to the Lok Sabha elections, there was a view that people were waiting for the outcome. Most people thought the result was a foregone conclusion. But activity hasn't yet picked up.

What is weighing on the mind of corporate decision makers?

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