Despite low domestic demand and uncertain economic environment globally, India’s economic situation will improve significantly at the critical levels of macro economy and industry in the coming six months, according to the latest round of the Assocham Bizcon Survey (ABS).
Gauging and reflecting the mood of the business and the industry, the September Round of Survey found that though the situation on the ground did not change in the last six months, prospects have improved for the next two quarters.
Majority of the respondents (cumulatively 60.4) in the ABS were of the opinion that overall economic situation would be better. At the industry level 62.5% of industry shared the viewpoint that performance shall be better in the next two quarters.
“The Assocham BIZCON Survey, September 2012 round was conducted against the background of the prevailing economic slowdown and the decelerating industrial growth, following serious political logjam, to really gauge the impact of all these developments on the overall business climate. It has raised industry concerns like high cost of credit, poor infrastructure and certain regulatory issues delaying project take-offs,” Chamber President Rajkumar N Dhoot said while releasing the survey.
At the organisation level, 65% of the respondents felt that the selling price will remain more or less same. However, only 41.7% felt that their profits are going to be pretty much at current levels in short term, thereby indicating that India Inc may face pressure to maintain their profitability.
In terms of fresh investment, about 46% said that the situation would remain more or less the same.