Trade unit weighs on investments in the private sector: UBS

Private Capex refers to the investments of private companies in long -term assets such as real estate, equipment or technology.

Uncertainty about trade agreements is on the rise as an important factor that stops investments by the private business sector of India, according to UBS Securities India. The report writes the lack of clarity about global trade in countries and pending agreements as a contributing factor for the hesitation of companies in investing in long -term capital expenditure (Capex).

“From the point of view of companies/investors, we believe that trade agreements reduce business uncertainty and uncertainty is one of the factors that the private business sector of India has limited to invest,” the report added. Finance Minister Nirmala Sitharaman from the Union expressed his concern about the lack of substantial investments by business companies, despite the capital push by the governments at both the center and state level.

Sitharaman said at an event in New Delhi: “From the government, whether it is the state or the center, the two powerful instruments with which we can influence the investments in the country, are government spending and also make policies that is attractive. What I cannot speak about, and you could probably follow up.

“In fact, why would I say Covid? In fact, even from 2019, as soon as the problem with two balance had been tackled. And the corporation tax was brought down. We can see that the balance sheets of the business sector have become really healthier. But today, what I am more than in the production of investable funds that are more than more than more than founding of the funds who are more than more than found to the founding of the founding of the founding of more than the founding of the funds. Investing funds that are more than investing funds in the course of the investable funds.

Recently YearRajiv Memani, president of Confederation of Indian Industry (CII), resisted the prevailing market sentiment about expenditure for private capital and claimed that although there is a perception of a delay, the Private Capex actually takes place in various industrial sectors in the country.

Private Capex refers to the investments of private companies in long -term assets such as real estate, equipment or technology. This Capex is made with the intention of broadening the activities of the company.

While he recognizes a delay for the past 6-8 months, Memani attributed this to external factors instead of structural problems.

The growth of private capital expenditures in the country registered a composite annual growth rate (CAGR) of 19.8 percent in the last five years from FY21 to FY25E. This growth was powered by important sectors, including oil and gas, strength, cars and raw materials.

Published on July 27, 2025