India's top corporates are expected to nearly double their capital expenditure (capex) to around $800 billion by FY30, according to a recent report by S&P Global Ratings. This projected surge in spending will be largely driven by strong revenue and profit growth, with infrastructure development playing a key role.
Neel Gopalakrishnan, credit analyst at S&P Global Ratings, highlighted that a combination of improving infrastructure, political stability, and healthier corporate balance sheets is encouraging large-scale expansion plans. These investments are expected to significantly expand the revenue base of Indian companies.
The report also points to favorable government policies as a major factor supporting private sector capex. Initiatives aimed at boosting domestic manufacturing, increasing exports, and strengthening supply chains are fueling this growth momentum.
S&P draws a parallel between India’s projected capex trajectory and China’s corporate investment boom in the 2000s. Back then, China saw rapid corporate growth due to lowered trade barriers, substantial foreign investment, and consistent double-digit GDP expansion.
While India’s policy direction mirrors China’s in terms of encouraging investment and industrial growth, there are key differences. Indian companies, S&P notes, will likely face tighter financing conditions compared to their Chinese counterparts during their growth phase. However, this could serve as a safeguard, preventing the kind of debt buildup that several Chinese sectors experienced.
Overall, India’s corporate capex outlook appears robust, with long-term economic policies, private sector participation, and infrastructure growth positioning the country for a strong investment cycle through 2030.
.jpg)
