8 per cent growth not till FY19

Mumbai: Growth in the investment cycle by the private sector is not expected to pick up in the near future. Analysts whether from rating agencies or broking houses predict a rather uncertain situation on growth in investment.

Fitch has for instance, forecast a sharp pick-up only in FY18 investment growth to 6.3 per cent, while Crisil is of the view that the investment cycle is yet to pick up as there hasn’t been a material deleveraging in corporate balance sheets, and weak assets continue to mount in banking.

Global growth is also weak, it said. The HSBC research report on India observes that in treading the fine line between macro stability and growth, public capex spending is not growing as handsomely as last year. And since private investment appetite is weak, overall investment is in a contractionary phase.