India Inc is optimistic about the state of economy improving in the next two quarters at the industry and firm level. With the last six months rough on the ground level, the survey conducted by ASSOCHAM believes there is too much chance for improvement.
As per the survey by ASSOCHAM Biz Confidence, "In the coming six months there seems to be growing optimism in terms of the economic performance with 80 per cent respondents feeling that the state of the Indian economy would be better."
The Biz Con survey also pointed out that there were signs of economic recovery underway and the situation is still far from robust. The underlying economic activity remains weak on account of the sustained decline in exports, rainfall deficiency and weaker than expected momentum in industrial production and investment activity.
"But riding on hopes of some decisive decisions expected after the Bihar elections, the industry respondents remain optimistic about improvement in the sentiment, though at the present moment broad demand and investment activity remains subdued," ASSOCHAM secretary general D.S. Rawat said.
He added another reason for the positive outlook stems from the macro-economic stability that will help bring down further interest rates, less volatility in the foreign exchange market and ease of doing business.
However, the survey seems to reflect that in terms of the domestic investments it is believed by majority of the respondents (56.0 percent) that there has been no change in the firm investment plans.
The sentiment seems to grow even more going forward with 60.0 percent respondents of the view that October to December 2015 quarter also would not see much change in the investment levels.
The industry wants quick action on infrastructure development, clearance of projects, stability in prices, effective policy reforms and better coordination between states and the Centre.
