Forecasting capital expenditure in corporate sector

Abstract

In countries like the US; a standard approach to forecasting capital expenditure in the corporate sector has been to survey the investment intentions of companies and to predict the likely investment on the besis of these intentions. Such surveys are yet to he developed in India and some efforts made in this direction have not yielded good results. An alternative approach based on the same idea stems from the nature of the financing of industrial projects in this country. Almost all major projects approach the term lending institutions which as a result have with them compete data on the projects for which they have been approached for assistance in one form or the other. By aggregating information about the time phasing of capital expenditure on projects, it should be possible to indicate the investment that is likely to be made in the course of a year on all the projects for which assistance has been provided.