Business confidence up, India Inc pegs growth over 7 per cent | business | Hindustan Times
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Business confidence up, India Inc pegs growth over 7 per cent

business Updated: May 02, 2010 12:10 IST

IANS
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Business confidence in India has improved and a majority of companies across the country expect the economic growth to be more than 7 per cent, reveals a survey by the Confederation of Indian Industry (CII).

"Business Confidence Index for April-September 2010-11 improved by 1.5 points to 67.6 as compared to a 7.4 point increase during the second half of 2009-10," said the survey.

The survey, based on a large sample of 458 companies, revealed that a majority of 60 per cent of the respondents expect gross domestic product (GDP) growth for the year 2010-11 to range between 7.5-8.5 per cent. And 28 per cent expect it to be in the range of 8-8.5 per cent.

About 90 per cent of the respondents expect inflation to be above 5 per cent in 2010-11, while 26 per cent expect it to be above 8 per cent.

"With headline inflation nearing double digits, inflation is mentioned as one of the top concerns for the business community," said the survey statement.

According to 79 per cent of the respondents, production is expected to increase in the next six months.

The increase in production is likely because of expected increase in new orders. About 81 per cent of the respondents expect new orders to go up in the next six months, compared to about 62 per cent who revealed that new orders had increased in the second half of 2009-10.

Companies will also look at investing more during the fiscal as the survey found that 73 per cent of the respondents plan to increase investments in the coming six months.

On exports, 66 per cent of the respondents expressed confidence that exports would increase in the next six months. However, procedural delays continue to bog exporters with 91 per cent of the respondents saying that the delays have not reduced.