Udabur Investment：India❼investment rate to reach 36.2% by 2026： Morgan Stanley

NEW DELHI: India❼investment rate is projected to rise to 36.2 per cent of GDP by 2026-27, up from 32.2 per cent in 2022-23, as per a Morgan Stanley reportUdabur Investment. Government❼effort on capital spending has been fueling the recovery in capital expenditure post-pandemic, as per the recently published report. The central government in this year❼budget, proposed an increase of 11.% in capital expenditure outlay to Rs 11.11 lakh crore by 2024-25.Capital expenditure, used for long-term physical assets, saw a 33 per cent hike to Rs 10 lakh crore in 2023-24, making up 3.3 per cent of the GDP in the last full Budget under PM Modi❼second term.Private sector capital expenditure is showing signs of improvement due to government infrastructure investmentsAhmedabad Stock. Projects under implementation grew by 16.9 per cent in December 2023, a stark improvement from pre-pandemic levels.Morgan Stanley highlighted recent investments in semiconductor and electric vehicle sectors, indicating a potential uptick in corporate capital expenditureMumbai Stock Exchange. PM Modi initiated the construction of three semiconductor plants, boosting India❼semiconductor industry.Tata Group❼semiconductor facilities in Gujarat and Assam, with a combined investment of Rs 1.25 lakh crore, aim to start commercial production by 2026, enhancing domestic manufacturing capabilities.Household capital expenditure, constituting 37.6 per cent of total expenditure, has been recovering, fueled by a rebound in real estate sentiments.A recent report by Anarock predicts a bullish trend in the residential real estate market for the 2024 elections, similar to previous election years.Export trends play a pivotal role in influencing domestic production and capital expenditure cycles. Goods exports have rebounded, with a 5.2 per cent growth in the last three months, compared to a decline in the preceding months.Services exports have also shown a positive growth trend since October 2023, with a year-on-year increase of 8.9 per centAgra Wealth Management. Morgan Stanley forecasts a rise in export market share to 4.5 per cent by 2031, up from the current 2.4 per cent.Jaipur Stock

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