On Monday a Delhi-based think tank National Council of Applied Economic Research (NCAER) came up with a survey report which highlighted that business confidence in India has declined to a 6-year low during August-October.
In the report, Business confidence index declined to 103.1, a 15.3% fall from the previously ended quarter in June. In October 2013, BCI was reported to be 100.4. "The numbers suggest a deep and all-pervasive worsening of business sentiments," NCAER said in a statement.
Due to the deep inflicted slowdown, the country for the quarter ended June reported GDP growth at just 5%, while the private consumption expenditure has also gone down to an 18-quarter low of 3.1%.
In the earlier month, the IMF also lower the GDP forecast for the country to 6.1% from 7% for FY 20. The organization cited the various uncertainty at corporate and environmental levels as also the chaos at the NBFCs fuelled by the IL&FS crisis.
The survey data revolves around 4 questions majorly such as will the economic sentiment improve in the next 6 months, financial position of the firms will improve in 6 months, the investment climate is positive as well as the present capacity utilization is close to or above optimal. And the fall in the BCI is the result of the deterioration across all of these listed 4 components.