India Inc's business confidence has improved since August: Survey

Written By Unknown on Minggu, 07 Oktober 2012 | 17.34

PTI | Oct 7, 2012, 10.41AM IST
NEW DELHI: India Inc's business confidence has shown a marked improvement since August, mainly buoyed by several decisions taken by the government recently, including allowing FDI in multi-brand retail, aviation and approving hike in foreign investment in insurance, Assocham has said.

However, "it will take another three months before the feel-good gets converted into a sharp recovery in the economic growth", the survey by the trade body added.

About 70% of the 245 CEOs who participated in the survey said the GDP growth in 2012-13 will not be below 6%, it added.

Majority said they do not see any political threat to the government and expect it to complete its full term.

Rather, the pace of reforms as witnessed in the last two months will continue for at least next six months, it said.

The vast majority of the respondents said that "Prime Minister Manmohan Singh is expected to hold his ground and not yield to the pressure to roll back reforms".

It also said one or two big ticket multi-billion infrastructure projects should now take off and demand should return to the consumer durables.

Among other reform decisions, the government has approved foreign investment in pension funds and power exchanges.

"The areas still showing concern are exports, especially in the merchandise segments. The demand slowdown and recession in some European economies are impacting the shipments," it said, adding that exports for the year would fall below the target of $360 billion.


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