Q.3 Economists are predicting a potential virtuous capital investment (capex) cycle to kick in globally including in India. Do you agree with this view? Give reasons in support of your answer.(10 Marks)

Mentor’s comment-
  • https://indianexpress.com/article/opinion/columns/a-reality-check-on-great-capex-expectations-7704726/
  • In the intro, mention the article in the Economist and prediction by Morgan Stanley.
  • In the body, mention India’s current situation for India such as falling fixed capital formation, falling capex growth rate for the listed companies, decreasing new projects, low capacity utilisation¬†etc.
  • Going by the indication given by these factors you can conclude that capex wave is unlikely to happen in India’s case.
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k.s.nandhini
k.s.nandhini
7 months ago

Razorpay:I8GfoK9Ze5ifgl

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