AI, chips, defence to drive Rs 16 lakh cr in India’s next capex cycle: Union Bank report
India’s next wave of corporate investment is likely to be led by artificial intelligence (AI), semiconductors and defence, with indicative public and private capex of about Rs 5.9 lakh crore, Rs 5.27 lakh crore and Rs 5.07 lakh crore respectively—close to Rs 16.24 lakh crore across the three sectors.
A Union Bank of India research report says this spending will steadily shift banks’ credit opportunities towards battery storage, semiconductor packaging, green hydrogen projects with assured buyers and defence component suppliers over the next three to five years.
