Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Capex Super Cycles Over Past Seven Decades
Oct 1, 2019


India has seen six capex super cycles in the seven decades of independence.

These were phases when public or private sector capex or both were well above GDP growth rates.

And the capex was instrumental in helping companies generate additional profits.

As you can see, such capex super cycles are rare. They work best when factory capacities are well utilised and companies undertaking capex have little debt.

Tax incentives for undertaking capex act like the icing on the cake.

Capex super cycles are usually initiated by the public-sector companies. They are soon topped up by the private sector.

Public private partnerships for capex have done wonders for core infrastructure sectors in the past. India's national highways and airports are prime examples of this.

Data Source: CSO, RBI

This Chart Of The Day was published in The 5 Minute WrapUp - This Super Cycle is Set to Accelerate the Rebirth of India

Equitymaster requests your view! Post a comment on "Capex Super Cycles Over Past Seven Decades". Click here!

  

Our Most Popular Charts

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS