New Delhi, April 15 -- The recovery in private corporate investment in India may face further delays due to weak corporate sentiment triggered by higher U.S. tariffs and the risk of China offloading excess manufacturing capacity, according to a recent report by UBS.

The report stated that while household consumption in India is expected to remain steady, the business outlook has turned cautious. It said rural demand is likely to bounce back due to good crop prospects, and urban demand is expected to stabilise with easing inflation and interest rate cuts.

However, these positive domestic trends may not be enough to boost corporate investment in the short term.

It said, "There could be a further delay in private corporate capex recovery ...