FICCI Survey points out India’s business confidence highest in past decade
FICCI’s Overall Business Confidence Index has recorded highest decadal mark of 74.2 in present round. This is attributed to improvement in present conditions along with expectations for the future, pointed out the industrial body on Sunday.
In the previous survey, the Index stood at 70.9. Furthermore, the survey recorded last year as 59. The survey further revealed improved capacity use, demand conditions recovery and a positive promising outlook on many operational sectors.
Demand has increased for businesses as the build up in demand during lockdown period was released. But continuous rise in cost of raw materials is not being a bothersome factor for India Inc. FICCI (Federation of Indian Chambers of Commerce and Industry) pointed out in its survey that increase in fuel and commodity prices is starting to impose pressure on input costs of the companies. The companies who participated in the FICCI survey cited the high input costs being experienced by them, including man power costs and lack of affordable credit were one the top concerns in year 2021.
FICCI stated, “In this context, respondents also added that leaving trade policy issues unaddressed will create an even bigger challenge with China as well as other countries including Vietnam regaining market share to become global suppliers.”
“Lack of adequate export incentives is also making it difficult for Indian entrepreneurs to compete globally,” it added.
FICCI noted that Union Budget 2021-22 has been very promising. The budget along with announcement of Atmanirbhar Bharat package has instilled optimism in industry which is shown through improved operational parameters outlook. This is likely to improve profits of India Inc over next two quarters, FICCI projected. Participants that projected higher profits over period of next six months increased from last survey’s 33% to 36%.