New Delhi, October 14 (IANS). Capital expenditure by India’s large corporate companies is expected to double to $800 billion in the next five years. The reason for this is the increase in profits and income of companies. This information was given in a report released on Tuesday.
The report of S&P Global Ratings said that in the coming times, the growth of Indian companies may remain the same as that of Chinese corporates in 2000. Also told that there is expected to be a big increase in the income of India’s top companies.
S&P has estimated that India’s corporate capital expenditure will reach approximately $800 billion from FY26 to FY30, mainly due to investment in infrastructure.
The report further said that an additional investment of $ 1 trillion is expected from fiscal years 2031 to 2035 for advanced research and development.
“Improving infrastructure, political stability and improving corporate balance sheets are fueling major expansion plans that will expand the revenue base of Indian corporates,” said Neil Gopalakrishnan, credit analyst at S&P Global Ratings.
“Supportive government policies are proving helpful, including a focus on domestic self-reliance, greater exports and development of the supply-chain ecosystem,” he added.
“Our fundamental view is that India’s growth momentum will remain strong and its industrial base and supply chains will become deeper and more efficient,” Gopalakrishnan said.
The report said these factors are similar to the pace that led to years of rapid expansion and market dominance for China’s corporate sector in the 2000s.
China’s expansion in the 2000s was driven by low trade barriers, significant foreign investment, and double-digit GDP growth.
S&P Global said, “Indian companies will face more difficult financial conditions than their Chinese counterparts during their high-growth phase. However, such conditions may help Indian companies avoid large debt accumulations like many Chinese corporate sectors.”
–IANS
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