Business confidence drops in Jan-Mar quarter: Ficci

Business confidence drops in Jan-Mar quarter: Ficci
The industry body Ficci has said that business confidence dropped in the January-March 2013 quarter to 57.4 from 61.2 during the preceding quarter amid slowing GDP growth and no respite from global economic downturn.

However, Ficci's survey showed that most of the respondents were optimist on future and expected improvement in investment activity on back of recent measures taken by Cabinet Committee on Investment to expedite the process of granting project clearances.

The report said that steep fall in WPI inflation also holds good for future as it will pave way for RBI to ease lending rates and boost investments in the economy.

The survey respondents pointed to the marginal decline in interest rates for both working capital and term loans over the past six months, suggesting that monetary policy transmission has been very slow.

About 36 per cent of the participating companies felt the current economic situation was moderately to substantially better over the previous six months, while 49 per cent of participants said they anticipated an improvement in the overall economic situation as compared to the first two quarters of FY13.

Read more about: ficci
Story first published: Monday, June 10, 2013, 10:22 [IST]
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