{"id":405174,"date":"2021-03-16T11:44:39","date_gmt":"2021-03-16T06:14:39","guid":{"rendered":"https:\/\/infralive.com\/web\/?p=405174"},"modified":"2021-03-16T11:53:31","modified_gmt":"2021-03-16T06:23:31","slug":"will-private-sector-capex-pick-up-in-fy22","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/will-private-sector-capex-pick-up-in-fy22\/","title":{"rendered":"Will private sector capex pick up in FY22?"},"content":{"rendered":"<p>Capital expenditure (capex) in the financial year 2021 was mostly led by the government, as private sector spending was delayed with covid-19 hitting business operations. However, analysts at Bank of America (BofA) Securities estimate a pick-up in private capex from FY24 onwards. They expect order flow growth in FY22 and FY23 at 14% and 8% respectively, mainly led by government-funded infrastructure.<\/p>\n<p>\u201cWe expect a further step-up in growth from FY24 once private sector capex accelerates as monopolies are opened. We see India on the cusp of a multi-year capex cycle, similar to that in FY03-12,&#8221; BofA said in a note on 15 March.<\/p>\n<p>BofA believes the upcoming capex upcycle will be initially led by central government and PSU spending. The recent decisive and growth-focused budget with special emphasis on infrastructure, is a clear sign of the government\u2019s view of easing India&#8217;s long-term structural supply side constraints versus prioritizing demand-side stimulus. BofA sees over 20% year-on-year (y-o-y) ordering growth from central governemnt and PSUs in FY22.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Capital expenditure (capex) in the financial year 2021 was mostly led by the government, as private sector spending was delayed with covid-19 hitting business operations. However, analysts at Bank of America (BofA) Securities estimate a pick-up in private capex from FY24 onwards. They expect order flow growth in FY22 and FY23 at 14% and 8% respectively, mainly led by government-funded infrastructure. \u201cWe expect a further step-up in growth from FY24 once private sector capex accelerates as monopolies are opened. We see India on the cusp of a multi-year capex cycle, similar to that in FY03-12,&#8221; BofA said in a note [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[139,130,237],"tags":[],"class_list":["post-405174","post","type-post","status-publish","format-standard","hentry","category-live-mint","category-newspapers","category-power-live-mint"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/405174","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=405174"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/405174\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=405174"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=405174"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=405174"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}