New Delhi, Oct. 18 -- India's long-awaited private sector capital expenditure cycle may finally be gaining traction, with strong corporate and small business lending alongside rising machinery imports pointing to an improvement in investment activity, according to a report by global brokerage firm Jefferies.

The brokerage said bank credit growth has remained robust, rising 18.1 per cent year-on-year in mid-September, with corporate lending and loans to micro, small and medium industrial enterprises recording particularly strong growth.

Corporate loans increased 21.6 per cent year-on-year in August, while loans to micro, small and medium industrial enterprises rose 25.5 per cent, indicating strengthening credit demand across businesses....