India's Capex Revival: Manufacturing & New-Age Sectors Lead, Services Lag

• India's capital expenditure (capex) cycle shows early signs of private investment revival, with government support.
• Current capex cycle differs from previous ones, driven by new sectors like metals, renewables, electronics (PLI), and chemicals.
• Manufacturing capex is strong, while services, large infrastructure, and PPP-led investments remain weak.
• Experts Teresa John (Nirmal Bang) and Sameer Narang (ICICI Bank) highlight manufacturing and new-age sectors as key drivers.
• Government spending, particularly in railways and defence, is crucial, with central government capex at 3% of GDP.

Why It Matters: India's capex revival is led by manufacturing and new-age sectors, with government support filling gaps.