MUMBAI, March 28 Reuters The rising capital expenditure capex trend of Indian corporates is likely to continue and grow at 1012 a year during the next fiscal year to March 2024, Fitch Ratings said in a release on Tuesday.

Fitch said capex was flat over FY19 to FY21 and grew 16 in FY22. The forecasts are for the 8 state owned enterprises and 21 privately held Fitchrated corporates in the country.

We believe growth opportunities arising from India39;s supplyside policy steps in recent years, domestic corporates focusing more on localisation, and multinationals looking to reduce risk in global supply chains may attract higher private investment in the medium term, analysts at the rating agency wrote.

However, progress that is slowerthanexpected may present risks.

The ratings agency said government reforms such as the goods and services GST tax act, bankruptcy code and more recent measures such as a lower corporate tax rate, the PLI production linked incentive schemes and rising state spending on infrastructure may further boost investments.

Indian banks have fixed their nonperforming loans and improved their credit costs in recent years and are well positioned to support the funding needs to corporates, it said.

However, currency pressures from high commodity prices and a weak global economic outlook present risks to India39;s investment demand as it remains a net importer of energy and exports 21 of its output, Fitch said.

The capex outlook may also be tempered by…