Hotline: 1800 102 2007
Hotline: 1800 102 2007
Search Business Opportunities
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 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
  • Juices / Smoothies / Dairy Parlors
    About Us:   The Crêpe Café is BFC Retail Group ’s..
    Locations looking for expansion New Delhi
    Establishment year 2001
    Franchising Launch Date 2018
    Investment size Rs. 50lac - 1 Cr.
    Space required 750
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Delhi New Delhi
  • Quick Service Restaurants
    About Us: There is one inexhaustible aspect of everyday life that..
    Locations looking for expansion Delhi
    Establishment year 2018
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Fine Dine Restaurants
    About Us: Mirch Masala, a venture of Ahura Restaurants Private Limited,..
    Locations looking for expansion Ahmedabad
    Establishment year 1992
    Franchising Launch Date 2008
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 2500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Prahaladnagar Ahmedabad
  • Quick Service Restaurants
    About Us: SUPERLEAN MEALS, a venture of SUPERLEAN MEALS Pvt. Ltd...
    Locations looking for expansion Delhi
    Establishment year 2018
    Franchising Launch Date 2019
    Investment size Rs. 20lac - 30lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
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