Global growth is more resilient than expected with large economies holding the fort. India remaining an outperformer on the output front with a domestic consumption and government capex leading from the front. These efforts seem to be bearing fruit with industry credit growth reaching a multi-year high. The largest challenge remains from the external sector, with the INR depreciating quickly. However, policymakers may be viewing this as an opportunity for India’s exports in a tough tariff environment. The Report discusses these factors in detail and concludes that the ingredients for a private capex boom are in place – i.e., light corporate balance sheets, moderate spreads, and stable benchmark yields.
