West Asia war to slow India Inc’s capex in FY27 as firms hit pause on new investments

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The continuing conflict has heightened concerns around inflation, currency volatility and demand slowdown in India, key variables shaping corporate investment decisions. Due to currency volatility corporates are delaying import-heavy capex in anticipation of more favourable exchange rates. At the same time, export-oriented sectors are factoring in demand uncertainty and trade-related disruptions before committing fresh investments.