Key Points
Indias capex cycle is expected to continue its run, with the current uptick resembling the 2003-07 period when growth averaged 8.6%, Morgan Stanley said...
It pointed out in a note that the investment ratio, or gross fixed capital formation to GDP ratio, is expected to move up to 36% of the GDP by FY27 from 34% expected in FY24...
Indias investment ratio increased by 12 percentage points to 39% in FY08 but declined to 28% during the pandemic...
The public capex-led nature of the present cycle in India plays an even more important role for the sustainability of the overall capex cycle, Morgan Stanley researchers pointed out in a note...
They also noted that other characteristics that resemble the 2003-07 period are the urban demand leading rural demand, rising share in global exports and macroeconomic stability...
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