domestic The rating agency Crisil (CRISIL) said on Thursday that the Indian industry’s profit is at the highest level of the decade. However, despite tremendous profits, there is no expectation of continuous increase in the capital expenditure of the private sector. The agency said the Indian industry profit is going to grow for the third consecutive year in the next financial year (2025-26) due to softening of commodity prices. Except for banking, finance, oil and gas sector companies, analysis of 800 companies shows that the tax-tax profit margin will increase to 20 percent in the next financial year.
Government has been investing the most in the economy for the last few years
The government has been investing the most in the economy for the last few years and the demand for improvement in corporate capital expenditure is also arising. However, instead of investing to create new capabilities, the Indian industry has invested a lot of money in loans and other measures, while the level of capacity is high. Crisil Chief Economist D.K. Talking to the media, Joshi said, “Companies’ ability to invest does not match the desire to invest at this time.”
Income hike of Indian companies will increase to 8 percent in next financial year
D.K. Joshi said that uncertainty due to unstable global environment and inequality in domestic demand are factors that are preventing companies from investing. Rating agency Crisil said that the income growth of Indian companies will increase to 8 percent in the next financial year, while it is expected to be 6 percent in the current financial year (2024-25). The agency emphasized that this increase would not be due to increase in value but due to high amounts.
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