New Delhi: Global uncertainties notwithstanding, India Inc.’s business optimism has soared, buoyed by policy continuity and strong domestic demand, especially in rural India. A survey on Sunday showed that the industry remains bullish on business sentiments in FY25.
The Confederation of Indian Industry (CII) Business Confidence Index increased to a two-quarter high of 68.2 in the second quarter of the current fiscal year (July-September), up from 67.3 in the previous quarter and 67.1 in the same quarter last year.
The survey respondents mentioned increased consumption, particularly in rural areas, consistent progress in the monsoon, sustained attention on reforms, and new sightings in private investment as the primary reasons for growth in the current fiscal year.
More than half (59 percent) of the respondents anticipate an improvement in private capex in the first half of FY25 compared to the second half of FY24.
The findings showed this is encouraging as it is likely to provide support to public capex, which has shown an uptick recently after a lull in the first quarter due to elections.
“In tandem with the improvement seen in the business prospects, the industry has responded positively to the availability of employment opportunities across sectors. Almost half of the respondents anticipate an improvement in the hiring situation in their companies during the second quarter,” the report mentioned.
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The upcoming festive season bodes well for further strengthening growth prospects. Despite the persistent uncertainty in the global scenario, the positive impact of the festive season on growth is a reason for hope, according to the leading industry chamber.
The survey underscored that more than half of the respondents are expecting a rise in sales and the count of new orders in their companies in the July-September quarter. This increase in business activity should reassure the audience about the positive business sentiment in India.
As a result, a majority of respondents (46 percent) are optimistic about their company’s capacity utilisation levels, expecting them to range between 75 and 100 percent during the quarter ending September 2024. This anticipation of increased capacity utilisation should instil optimism in the audience about India’s economic outlook.
“This level is higher than the proportion witnessing such capacity utilisation levels in the previous quarter. Moreover, capacity utilisation between 75-80 percent is a propitious sign as it helps to fuel fresh investments in the economy as per the RBI,” the survey report noted.
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–IANS
