Notes on Indian equities, sectors and economy

Capex to drive growth in FY08

Posted by fairval on January 23, 2007

Capex will be a key theme in 2007, says Isec’s latest strategy report. Two factors will drive this — spike in spending by corporates, and government. FY08 is the first year of the 11th Five Year Plan, and this could see a boost in capex. Corporates are raising or have raised funds in recent times, and this will flow into capex.

Capex would contribute as much as 60% to growth in GDP in FY08, says the report. Capex’s share of growth was as low as 35% in FY04.


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