India’s capital expenditure cycle is increasing, resembling the boom observed during the period from 2003 to 2007, according to Morgan Stanley.

Morgan Stanley indicated that India’s present capital expenditure cycle is experiencing a resurgence following a decline spanning over a decade and is anticipated to continue expanding. The investment as a percentage of gross domestic product (GDP) in India is projected to potentially reach 36% by FY27, reminiscent of its ascent to 39% during the prosperous phase of 2003-07. The report highlighted that the ongoing cycle is primarily propelled by public capital expenditure.