India Inc continues to pile into financial investments while capex stalls
• Indian companies are shifting capital away from physical assets like factories and machinery toward financial investments, inorganic growth, and overseas expansions. • This trend is driven by weak domestic demand, existing spare capacity, and global economic uncertainty, which have stalled the next private capital expenditure (capex) cycle. • Madan Sabnavis, chief economist at Bank of Baroda, notes that these financial assets include strategic mergers, acquisitions, and investments in subsidiaries to expand global footprints.
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