2013-09-16

India Inc\'s business confidence lowest in 17 quarters: Survey

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 survey by industry body, Federation of Indian Chambers of Commerce and Industry (FICCI).

India Inc\'s business confidence lowest in 17 quarters: Survey

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 survey by industry body, Federation of Indian Chambers of Commerce and Industry (FICCI).
 

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.

 

Conducted during the months of July and August, 2013, the Business Confidence survey said,  “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.”
 

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

About 72 per cent of the participating companies cited high cost of credit as a major concern and a factor constraining growth, while 38 per cent 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 per cent on working capital loan and 8.9 per cent on term loan in the current situation.
 

Moreover, 67 per cent 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.

 

Related opportunities
  • Others Clothing
    Toonyport stands at the forefront of children's fashion, specializing in..
    Locations looking for expansion West bengal
    Establishment year 2022
    Franchising Launch Date 2024
    Investment size Rs. 20lakh - 30lakh
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Kolkata West bengal
  • Quick Service Restaurants
    Welcome to Jo Paji Foods! We are a Restaurant cum Cafe..
    Locations looking for expansion Uttar pradesh
    Establishment year 2022
    Franchising Launch Date 2023
    Investment size Rs. 10lakh - 20lakh
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Dadri Uttar pradesh
  • Charging Stations
    Acemic Automation Private Limited was established with the goal of..
    Locations looking for expansion gujrat
    Establishment year 2021
    Franchising Launch Date 2023
    Investment size Rs. 10lakh - 20lakh
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ahmedabad gujrat
  • Grocery Stores
    Founded in 2007, Prime Fresh is headquartered in Ahmedabad and..
    Locations looking for expansion Gujarat
    Establishment year 2007
    Franchising Launch Date 2023
    Investment size Rs. 10lakh - 20lakh
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ahmedabad Gujarat
Insta-Subscribe to
The Franchising World
Magazine
tfw-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts

pincode
;
ads ads ads ads