New Delhi, July 14 -- India's capital expenditure (capex) cycle is expected to strengthen further over the coming quarters, led by a gradual pickup in private sector investment, with overall investments projected to rise 1.8 times to about USD 2.2 trillion by FY2030, according to a Morgan Stanley report.

"We expect incremental capex of about US$1tn, as overall investments increase 1.8x over the next five years, to US$2.2tn. This should lift the investment rate to roughly 37.5% by F2030, from its current rate of 34.6% of GDP," the report noted.

The report said the central government is expected to maintain its budgeted capital expenditure target of Rs 12.2 trillion, or 3.2 per cent of GDP, with continued focus on infrastructure and defen...