Mumbai : Strong domestic demand is likely to push up the private corporate investments in the current financial year but in a slower-pace owing to a deceleration in global and domestic economies, the Reserve Bank said.

"The private corporate investment in 2008-09 is likely to increase, although it may grow at a slower pace... Corporate's incentives to invest are likely to remain strong in 2008-2009, namely high domestic demand and high capacity utilisation rates amidst improved profitability of last few years," RBI said in its August bulletin.

The capital investment intention of companies in the domestic market having institutional assistance upto the last fiscal amounted to Rs 1,48,350 crore as against Rs 1,25,248 crore envisaged for 2007-08, the apex bank said.

In the current fiscal, the proposed investment aggreagtes to Rs 1,73,173 crore, if the capital spending envisaged by companies raising funds from sources other than banks and foreign investors was added, RBI said.

"If the aggregate capital expenditure in FY 09 were to surpass the level indented for the year 2007-08, the fresh envisaged capital expenditure in 2008-09 must be above Rs 71,934 crore," the apex bank said