What factors have constrained the emergence of a broad-based private investment cycle in India? Analyse the role of corporate balance sheets, demand uncertainty and high real interest rates.

Despite corporate tax cuts and significant public infrastructure capital expenditure, India's private corporate Gross Fixed Capital Formation has experienced uneven momentum across sectors.

Key Constraining Factors:

• Consumption Demand Divergence: K-shaped economic recovery patterns have muted mass-market consumer demand in non-urban segments.
• Capacity Utilization Thresholds: RBI surveys indicate capacity utilization lingering around 74-75%, just shy of the ~78% threshold that typically triggers large-scale greenfield capital expenditure.
• External Global Headwinds: Elevated global interest rates, geo-economic fragmentation, and trade uncertainties impacting export-oriented manufacturing investments.