New Delhi, Aug. 22 -- Uneven demand, commodity price volatility, geopolitical tensions and competition from cheap imports are weighing on corporate investment decisions, with private investment confidence still recovering, according to a paper prepared by SBI Caps for a two-day banking conclave attended by Finance Minister Nirmala Sitharaman.

The paper said companies may defer large capital projects when demand, input costs, pricing and future cash flows remain uncertain, even though many large firms have the financial capacity to invest, TOI reported.

Investment Demand to Rise

The paper expects average annual investment demand to increase to around Rs 30 lakh crore during FY27-FY31, from about Rs 20 lakh crore during FY22-FY26. Howeve...