Government May Cut Spending to Control Deficit, Opening Door for Private Investment Pickup

Government likely to scale back investment spending to curb budget deficit over next 2 years per Goldman Sachs.

This may allow private sector to increase investment to offset lower public spending.

Private investment weakened over past decade but public investment picked up the slack.

Companies can now boost investment as they reconfigure supply chains and leverage Make in India.

Banks have capital to lend and regulators are fast with clearances, aiding private corporate capex revival.