NEW DELHI: India is set to enter a major corporate capex super cycle, with new corporate borrowings projected to reach Rs 200 lakh crore over the next five years, according to a report released on Wednesday. This surge follows nearly a decade of corporate deleveraging, which has strengthened balance sheets and boosted profitability across India Inc.
OmniScience Capital, in its report, said banks are likely to be the biggest beneficiaries of the upcoming investment wave. They are expected to capture Rs 99.50 lakh crore in lending opportunities over five years — translating to a 16% CAGR, a sharp shift from the sluggish credit growth seen in the past decade.
With asset utilisation rising, corporate profits at multi-year highs, and balance sheets healthier than ever, the report suggests that India Inc. is structurally prepared for a fresh round of large-scale investments. This favourable environment includes both strong borrowers and well-capitalised lenders, creating a long-term, broad-based growth opportunity.
The anticipated private sector capex surge will align with a significant government infrastructure pipeline of Rs 96 lakh crore planned by the Centre and major states. Supported by rising consumer demand, tax reforms, and an expected monetary easing cycle, credit growth is likely to accelerate further.
As the world’s fourth-largest economy, India is on track to become the third-largest by 2030, with GDP projected at $7.3 trillion, reflecting strong policy support and expanding global integration.
