India's Private Capex Announcements In FY23 More Than Double From FY19: Nirmal Bang's Thematic View

Nirmal Bang Report

In our fourth edition of the India capex pipeline report, we find that overall capex announcements in FY23 stood at Rs 29.9 trillion, up 51.8% YoY and ~5.8% above the pre-pandemic levels (FY19).

Capex announcements in FY23 were led by the private sector. Private sector capex announcements in FY23 stood at Rs 26 trillion, more than doubling from Rs 12.2 trillion in FY19 and up by 84.9% YoY.

Central and state government capex announcements however continued to lag pre-pandemic levels. Moreover, central government capex announcements declined by 61.3% YoY in FY23.

On the other hand, state government capex announcements reversed their declining trend of the past few years and grew by 92.7% YoY in FY23.

Overall, capex announcements in contact-intensive sectors such as air transport and aailways witnessed a visible turnaround in FY23 after the pandemic lull.

In FY23, private sector capex announcements by value were led by chemicals (26%) and air transport (25%). Electronics, which had accounted for 25% of projects in FY22, saw their share fall to 10% in FY23. Metals, which had accounted for 36% of projects in FY21 and 17% of projects in FY22, saw their share fall to 3%.

Central government capex announcements are being led by the National Highways Authority of India, accounting for 19% of project announcements in FY23, but down from 26% of projects in FY22.

Railways accounted for another 19% of project announcements in FY23, up from 6% in FY22 and 4% in FY21, but still way below the 43% in FY20.

Renewables across implementation agencies (covering wind and solar) accounted for 28% of projects in FY23.

State government capex announcements in FY23 were concentrated in the roads sector, accounting for 62% of project announcements, up from 17% in FY22. Railways (mainly metro projects) accounted for 12% of capex announcements in FY23.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.