Not much change on ground during first six months of Modi govt: Assocham

However, 62.5% respondents said their industry's performance would improve in first half of current financial year

A survey by the Associated Chambers of Commerce of India (Assocham) painted a bleak picture of economic activities during the second half of 2014 — the period after Narendra Modi came to power. However, respondents were optimistic that things will improve over the next few months.

While 54 per cent respondents said nothing much had changed at the operating level in the period under review, more number of industry leaders expressed optimism about the shape of things, going forward.

Sixty-two per cent respondents said their industry’s performance would improve in the first half of the current financial year. Forty-six per cent believed the January-March 2015 quarter won’t see any change in their domestic investment plans, while 42 per cent expected job hiring prospects to improve in the coming months.

Similar outlook was seen on international investment plans.

“Typically, investment follows improvement in sales and profitability. The latter — sales and profitability — are falling in place and there would be a visible change in the next few months following which investment should follow since there is always a lag,” Assocham stated here.

As many 58.3 per cent of the respondents expect that during January to March 2015 their sales volume will increase and 45.8% of them expressed similar outlook for profits.

With regards to the expected order books position in the Jan-Mar 2015 quarter, a majority (58.3 per cent) of the firms seem to be optimist and expect an increase in the orders. Thus, there are some indications of a possibility of a revival in the demand within the economy.