Page 44 - Nuvama | IC Report 2023

• DE-GLOBALISATION • DEREGULATION • DEBT • DEMOGRAPHY • DEMOCRACY

Exhibit 13:
India’s corporate
balance sheets 2.0
looking good…
Large excesses
during 2011-14
…can support
1.7 capex revival

1.4 18
(x)

1.1 16

0.8 14

Low excesses (%)
now
12
0.5
FY’04 FY’07 FY’10 FY’13 FY’16 FY’19 FY’22

India: Corporate net debt to EBITDA 10

8
Mar ‘08 Jun ‘11 Sep ‘14 Dec ‘17 Mar ‘21

India: Corporate capex as % of GDP

Source: CMIE, Nuvama Research

Low HH debt, young populace aid consumption premiumisation
As argued in Consumption, expanding incomes, increasingly young population, rapid urbanisation and
relatively low HH debt (sizeable portion of Indian HHs do not have access to formal credit) should
support lifestyle spending. This premiumisation of consumption would be highly supportive of
sustained expansion of India’s manufacturing and services base over coming decade.

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