JOIN US Spending on capital expenditure by private sector firms is unlikely to witness a pickup with capex spending of private sector likely to decline 11 per cent in FY16, according to rating agency Crisil.
According to Crisil, while 90 per cent of the companies polled were of the opinion that the sentiment has improved on the ground and capex should begin to recover by the next fiscal, ironically, near-term plans for their own companies belied this optimism. In terms of sectors, infrastructure and energy are expected to see a small increase in capex, but it will be more than offset by a decline in the manufacturing sector, the survey showed.
A Crisil survey of 192 listed, public and private companies from sectors such as infrastructure, energy, metals, cement, auto, pharma and textiles showed a 4 per cent decline in capex plans for 2015-16.