India Inc continues to pile into financial investments while capex stalls
India Inc. has shifted focus towards financial investments, with capital expenditures (capex) stalling amid economic uncertainty. Net fixed assets increased by 7% year-on-year in FY26, while capital work-in-progress fell by 6%, indicating a preference for financial assets that grew by 14%. This trend reflects corporate caution due to weak domestic demand and geopolitical volatility, delaying a broader private investment cycle in India.