Search ForexCrunch

India’s Capex data for Q1-FY19 (quarter ended June 2018) indicates that the marginal improvement in the previous quarter was temporary, notes the research team at Standard Chartered.

Key Quotes

“Trends reversed to a slowdown in the capex recovery, as observed in the last four years.”

“Total projects under implementation, new investment announcements, projects outstanding and project completions declined, erasing the gains in the March quarter.”

“Private investment slipped into negative territory again in Q1-FY19, after briefly turning positive in the previous quarter. It has been negative in 9 of the previous 10 quarters.”

“Capex data is likely to remain weak, picking up only in FY20 after the national and state elections scheduled for 2019. In addition, the twin balance-sheet issues and recapitalisation in the banking sector are underway and likely to be completed only by end-FY19 or early FY20.”