Investment, export takes hit in FICCI survey
The outlook on investment, exports and profits for India Inc has taken a hit, with companies expected to absorb rise in input costs, a survey done by industry chamber Ficci said.
The Ficci Business Confidence Survey for the third quarter of the current fiscal shows that 45 per cent of the respondents expected the investment outlook for the next six months to be better against 54 per cent in the previous survey.
"The outlook on investment has taken a hit owing to the spiralling capital goods prices coupled with the rising cost of credit. Lower investment in the near future may have long term impact of slowing down the economy," the survey said.
It said expectation of lower growth in exports, when viewed in the light of recent deceleration in export figures gave further weight to industries concerns regarding continued rise input and the appreciating rupee.
As against 51 per cent in the previous quarter,only 46 per cent of the respondents expected the export prospects to be better in the next six months.
However, Ficci said that the overall business confidence index at 75.0 was higher than 72.1 of the previous quarter.It said that the current condition index, the expectation index as well as the overall business confidence index are in the 'significantly optimistic' zone.
On inflation, 25 per cent of the 320 companies surveyed expected the prices to rise as against 27 per cent in the last quarter.
According to the Ficci survey, conducted over a wide range of segments, the employment outlook for the next six months has also taken a beating.