Corporate capital expenditure fell two quarters in a row, says report

India’s corporate sector, including public sector enterprises (PSEs), continues to go slow on investments and capital expenditure (capex).

According to data from Motilal Oswal Financial Services (MOFSL), corporate investments declined for the second consecutive quarter in the April-June period (first quarter, or Q1) of 2023-24 (FY24).

After a contraction of 0.5 per cent year-on-year (Y-o-Y) in the 2022-23 (FY23) January-March quarter, corporate investments likely fell 6.2 per cent Y-o-Y in Q1FY24, write Nikhil Gupta and Tanisha Ladhaa of MOFSL in their recent report on corporate investments in the country.

A slowdown in fresh investments has resulted in a steady decline in the contribution of the corporate sector to overall capex and its share in gross domestic product (GDP).

The corporate