Private sector investment not broad-based: BoB’s Sabnavis

Corporate investment has continued its revival in the April-June quarter (Q1FY24). However, much of this revival has been driven by aircraft purchases by airlines and is not broad-based, Bank of Baroda’s Chief Economist Madan Sabnavis said on Tuesday. This puts the onus of doing some more heavy lifting in terms of capital expenditure on the government.

“A key to acceleration in pace of growth in the Indian economy is a recovery in private sector investment. There have been affirmative statements made by several companies on investment in FY24 which is positive as it is premised on a recovery in consumption demand. The picture for the first quarter of the year is however, quite expectedly mixed,” Sabnavis said in a report.