Biz confidence at India Inc soars to 10-year high
- The survey captures the mood of the industry for the two quarters ending June 30, 2021.
Domestic firms are optimistic about greater pricing power that would drive their profits over the next two quarters with better hiring prospects, though fears of a fresh wave of Covid inflections, lack of affordable credit and rising costs are some of the key concerns, a business confidence survey revealed.
Overall, the Business Confidence Index witnessed further improvement at 74.2 in Q3 of the current financial year, the highest in a decade, the Federation of Indian Chambers of Commerce and Industry (Ficci) said in its latest round of survey involving 190 companies from various sectors. The survey captures the mood of the industry for the two quarters ending June 30, 2021.
“For the past few months, green shoots of recovery have been strengthening. The pick-up in activity has broadened and the same is being reflected in the various lead indicators. The demand conditions, which have been a major cause of concern for a majority of businesses, are also seen improving,” it said.
Respondents have been unanimous that the Centre’s capital expenditure push in the Union budget 2021-22 would lead to faster revival in growth. Finance minister Nirmala Sitharaman on February 1 raised the capital expenditure budget by 34.5% to ₹5.54 lakh crore in 2021-22.
The survey has been conducted against the backdrop of the economy coming out of recession in Q3 with 0.4% growth, after remaining in contraction mode for two consecutive quarters.
India Inc, however, remains cautious. The uncertainty surrounding a fresh surge in Covid cases remains the topmost concern for the corporate India, the survey showed. “A further acceleration in the pace of vaccination should help maintain stability in recovery,” it added.