Economy recovering, business confidence level up: Survey

By IANS,

New Delhi : The Indian economy has started showing signs of recovery from the slowdown and business confidence level is on the rise, according to an industry lobby survey.


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The latest Business Confidence Survey by the Federation of Indian Chambers of Commerce and Industry (FICCI) said the economy could soon move to a higher growth trajectory.

Around 300 companies with a turnover of above Rs.1 crore participated in the survey, FICCI said.

Nearly 57 percent of the participants said the overall economic condition was “moderately to substantially” better vis-�-vis that of last six months. In the last survey, only 9 percent of the companies expressed such confidence.

“The survey indicates a major jump in the overall business confidence index to 64.1 from 44 in the last survey. And this is clearly reminiscent of the high confidence level prevalent during the first half of 2007-08,” the report said.

About 69 percent of respondents expressed hope that the overall economic condition would further improve in near future.

According to the survey, just 18 percent of the respondents said they witnessed deterioration in performance levels over the last six months, while about 47 percent said their performance level improved during the period.

Moreover, 68 percent of the participants expect their performance to be better in the coming six months, expressing hope that the worst is over for the Indian economy.

However, India Inc still remains concerned over weak demand and high credit cost.

About 74 percent of the respondents said weak demand was still acting as a constraint for them.

Weak demand and high credit cost persist to be areas of concern, the report said.

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