After seven successive quarters of decline, the Federation of Indian Chambers of Commerce and Industry’s (Ficci’s) overall business confidence index has increased in the October–December 2008 with less number of respondents saying economic situation has worsened.
But five out of six operational indices like selling price index and profits index are in the negative territory meaning that the proportion of people expecting an increase in selling or profits are outnumbered by those who think otherwise.
The economic and industrial performance may have reached a trough and it would improve from now onwards, found the Ficci’s Business Confidence Survey.
The overall Business Confidence Index for the surveyed quarter, which has moved to 44 from 37.8 in the second quarter of 2008-09, had seen a significant deterioration at three levels — economy, industry and organisation.
“It’s now up to the government and the Reserve Bank of India (RBI) to expeditiously implement all the policies announced as well as inject further stimulus dosages, as this would strongly aid the growth process and boost business confidence,” said Harsh Pati Singhania, president, Ficci.