According to a report released on Tuesday, India’s growth outlook for all sectors is still solid, particularly for the industrial and capital goods sectors where government investment is still high.
The majority of corporations maintain a positive outlook for long-term growth and perceive this as a period of consistent expansion, with minimal indication of cyclical pressure, according to a research released at the event by Emkay brokerage firm.
The results indicated that there has been no discernible shift in the momentum of government spending, order book growth, or demand, and that the medium-term demand prognosis is still favorable, providing industrial enterprises with a consistently good operating environment.
It also mentioned that costs are generally under control and that the current decline in commodity prices may be beneficial.
The majority of industrial enterprises have experienced an upward pace in their capex plans, and most have not seen any revisions in recent times, according to the report.
A modest deterioration in asset quality may cause lending costs to normalize higher.
The main goal of policymakers, according to Rajeev Chaba, CEO Emeritus of JSW MG Motor, is to support the local supply chain in order to assist in achieving the goals of many stakeholders.
According to him, the goals are to lower the country’s crude import bill, lessen reliance on China for EV supply, increase localization to lower customer costs, and assist regional manufacturers.
In comparison to European inventors or Chinese producers, the Indian chemical sector has produced significant overall shareholder returns, according to Ashish Bharat Ram, Chairman of SRF. This is because of the industry’s lower base and transfer in manufacturing away as part of the businesses’ China Plus strategy.
In the first quarter of the current fiscal year, the government’s budget deficit decreased to 8.1% of the full-year estimate, down from 25.3% during the same period the previous year. By the end of June, the budget deficit was recorded at Rs 1.36 lakh crore.
Twenty per cent of the Rs 48.2 lakh crore in government spending that was allocated for the current fiscal year has been spent overall. To promote growth, the capital expenditure outlay has remained constant at Rs 11.11 lakh crore.
