Indian companies will invest up to 50 billion dollars, this company will lead, estimates Moody’s Ratings
Credit rating agency Moody’s Ratings said that Indian companies will invest $ 45 to 50 billion annually in the next one-two years to increase capacity. Under capital expenditure, the country’s most valuable company Reliance Industries’ share in this expenditure will be 30 percent. It said that Reliance will lead it. According to the news, Moody’s said in a report released on companies operating in India and Indonesia that to increase production chain integration and achieve the goal of net zero carbon emissions. Investment will be made. Companies will benefit from broad-based growth across sectors including metals, mining and steel, telecom and automobile companies.
Will spend more than 60% of the total expenditure of Indian companies
The report said that in the next one to two years, the annual capital expenditure of rated Indian companies will be around $ 45 to 50 billion. Reliance Industries’ stake in this will be only 30 percent. The company has earmarked approximately $15 billion for investment in various businesses. Moody’s said the oil and gas sector and Reliance Industries together will collectively account for more than 60 percent of the total expenditure of Indian companies in a year or two. Moody’s said the investment share of seven rated oil and gas companies in India will be about 30 percent of the total investment. These companies will spend approximately $15 billion annually to invest in green energy to expand existing capacity and reduce carbon emissions.
How much will ONGC and Indian Oil spend?
Moody’s Ratings said ONGC (Baa-3 stable) and Indian Oil will spend $6 billion and $4 billion, respectively, over the next two years on reserves enhancement, distribution activities i.e. supply chain integration and energy transition. Moody’s said that credit quality for Indian and Indonesian companies will remain better. Excluding China, India and Indonesia are the two largest emerging economies in Asia.
Domestic demand will play an important role
Both G-20 countries have the highest number of rated companies and the volume of rated debt among emerging economies. Moody’s said that India’s GDP (gross domestic product) growth rate is expected to be more than six percent in the next two years. Domestic demand will play an important role in driving India’s economic growth. Moody’s Ratings expects the earnings of rated Indian companies to grow by five percent in the next one-two years.
