Axis Bank's Neelkanth Mishra Challenges Capex Narrative: Private Investment Reviving

• Neelkanth Mishra of Axis Bank argues that the narrative of stalled private investment (capex) in India is misleading, despite popular belief.
• He highlights that private investment data is not easily visible in headline figures, but balance-sheet indicators of BSE 200 companies show investing cash flows growing faster than nominal GDP.
• Sector-level data supports this, with telecom capex (excluding 5G) growing at 15% and cement production up 8-9%, indicating broader industrial activity.
• Mishra notes the current investment cycle is more disciplined and sustainable than past booms, with strong order books for industrial companies.
• Sajjid Chinoy (JPMorgan) and Gautam Chhaochharia (UBS) add that sustained consumption recovery and an accelerating credit cycle are crucial for the broader private investment expansion.

Why It Matters: Private investment in India is subtly reviving, driven by disciplined capital deployment and improving financial conditions.