India Inc bullish on growth, profits

India Inc is expecting double-digit growth in sales and profits, according to the Business Confidence Survey conducted by the Federation of Indian Chambers of Commerce and Industry (Ficci).

Fifty-two per cent of the respondents expect double-digit rise in sales, another 30 per cent see profits rising 10- 30 per cent, and 21 per cent anticipate exports to grow 20- 30 per cent, according to the survey.

The survey, based on responses from 441 companies in the heavy, light industry and services sectors, said 83 per cent respondents felt that the current overall economic conditions were moderately to substantially better compared to the last six months.

Seventy-five per cent of the respondents expect overall economic conditions to be "moderately to substantially better" in six months.

Nearly 71 per cent feel that the respective industry is performing "moderately to substantially better" compared to the industry's performance in the past six months. Nearly 75 per cent feel that their industry will perform "moderately to substantially better" in six months.

The current conditions index has gone up from 67.8 in the last survey to 73.4 in the present survey while the expectations index is up from 69.9 to 76.7. The Ficci Business Confidence Index stands at 75.6, a 9.2 per cent gain over the last quarter value of 69.2.

The confidence indices have seen a steep upward revision in their values in the present round of the survey, with the value of all the three indices in the "significantly optimistic zone". Last year the current conditions index was in the "moderately to substantially better zone."

On the price front, about 23 per cent foresee an increase in prices while 59 per cent would adhere to price maintenance. In case of profits, 59 per cent expect higher to much higher profits and 55 per cent higher to much higher exports.

Infrastructure glitches are what the corporates are most worried about with 60 per cent of companies citing poor infrastructure as major problem.