Fresh round of capital expenditure by corporate sector likely to fuel the next leg of growth: RBI Bulletin
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The Reserve Bank of India’s (RBI) latest Bulletin has said that Fresh round of capital expenditure by the corporate sector is likely to fuel the next leg of growth. It stressed that stable and low inflation at 4 per cent provides the bedrock for sustaining GDP expansion. The likelihood of the global economy exhibiting stronger-than-expected growth in 2024 has brightened in recent months, with risks broadly balanced.
It stated that the Indian economy continues to sustain the momentum achieved in the first half of 2023-24, going by high frequency indicators. Overall, investment intentions of the private corporate sector have been positive this year so far.
Moreover, it stated that total cost of projects, for which loans were sanctioned by major banks/all-India financial institutions (FIs) stood at Rs 2.4 lakh crore during April-December 2023, which was 23 per cent higher than that in the corresponding period last year. Funds raised through external commercial borrowings (ECBs) for capex and initial public offerings (IPOs) remained robust during the second and third quarters of the current financial year, though their levels were lower than such resources raised during Q1 2023-24.
