Moody's Forecasts Robust Capex Spending for Indian Firms

Moody's Ratings reports that Indian companies plan to invest USD 45-50 billion annually on capex over the next 1-2 years, driven by firms like Reliance Industries. Investments are focused on capacity increase and green energy. The Indian economy's growth and strong earnings are expected to keep corporate leverage low.

Moody's Ratings revealed on Tuesday that Indian companies are set to invest USD 45-50 billion annually on capital expenditures over the next 1-2 years. This surge in spending is aimed at boosting capacity, with Reliance Industries alone contributing 30% of the total.

According to the report, investments targeting vertical integration and net zero goals will sustain high expenditure levels. Reliance Industries, with an annual capex budget of around USD 15 billion across different sectors, will play a significant role in this spending spree.

The oil and gas sector, particularly companies such as the Oil and Natural Gas Corporation Ltd. and Indian Oil, will contribute heavily to the capex, focusing on expanding existing capacity and green energy investments to mitigate carbon transition risks.