India's investment rate to reach 36.2% by 2026: Morgan Stanley

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Key Points

Government's effort on capital spending has been fueling the recovery in capital expenditure post-pandemic, as per the recently published report...

The central government in this year's budget, proposed an increase of 11.% in capital expenditure outlay to Rs 11.11 lakh crore by 2024-25...

Capital expenditure, used for long-term physical assets, saw a 33 per cent hike to Rs 10 lakh crore in 2023-24, making up 3.3 per cent of the GDP in the last full Budget under PM Modi's second term...

Private sector capital expenditure is showing signs of improvement due to. government infrastructure investments. . Projects under implementation grew by 16.9 per cent in December 2023, a stark improvement from pre-pandemic levels...

Morgan Stanley highlighted recent investments in semiconductor and electric vehicle sectors, indicating a potential uptick in corporate capital expenditure..