For Quick Alerts
For Daily Alerts

India Inc biz confidence worst in 4 years: Survey

By Super

New Delhi: India Inc's business confidence has plunged to the lowest level in 17 quarters -- reminiscent of the 2008-09 financial meltdown -- as cost and availability of credit constrain growth in a weak demand scenario, says a Ficci survey.

The industry body said overall business confidence index has fallen to 49.0 in the survey period, highlighting the significant moderation in the performance of companies vis-a-vis performance over the previous six months.


The participating companies are not too optimistic about the near term performance either, it added."A discernible increase is seen in the proportion of respondents reporting a 'moderately to substantially worse' performance at the economy and industry level going ahead," according to Ficci's Business Confidence survey, which was conducted during the months of July and August, 2013.

The slide in the confidence level of corporate India continued for the fourth successive quarter.

About 72 percent of the participating companies cited high cost of credit as a major concern and a factor constraining growth, while 38 percent said that availability of credit was an issue, the survey revealed.

Going forward, the companies suggested measures like expediting stalled infrastructure projects, simplifying policies and procedures in conducting business, implementation of Goods and Services Tax (GST) and a cut in interest rates by the RBI to kick start investments and propel growth.

The Reserve Bank will release its next mid-quarter monetary policy review on September 20.

Further, the surveyed firms indicated they would be comfortable paying an average interest rate of 9.4 percent on working capital loan and 8.9 percent on term loan in the current situation.

Moreover, 67 percent of the participating companies said that they do not intend to hire in the near term and their workforce is expected to remain at the current levels.

"The outlook with regard to sales, profits and exports remains subdued, with a majority of respondents anticipating no change from the current levels in the next six months."The participating companies are not too optimistic about the near-term performance either," the survey said.

The companies surveyed also said that the sharp fall in the value of the rupee has affected their input costs, which in turn has lowered their profitability.


Read more about: credit india inc cost growth ficci
Story first published: Monday, September 16, 2013, 9:13 [IST]
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more