Ahead of Budget, results of Business Confidence Survey, conducted by industry body FICCI showed a marginal dip in the proportion of respondents anticipating 'moderately to substantially better' performance over the near-term at economy, industry and firm level. Around 83% of the participants in the current survey cited a `moderately to substantially better` overall economic situation over the next six months, compared to 84% stating likewise in the last round.
The survey drew responses from about 150 companies with a turnover ranging from Rs 3 crore to Rs 10,000 crore and belonging to a wide array of sectors - chemicals, steel, paper products, textiles, automotive, electric machinery, pharmaceutical, food processing and hospitality.
Although the survey pointed better situation as compared to last year, it showed that sustainable turnaround remained elusive on investments, profits and exports. According to Ficci's poll, measures announced by the government over the course of last seven to eight months did have a positive impact on the sentiment of the business community, but continued implementation of these reforms were required by sustain the buoyancy.
The survey also found that the industry was confident about the government continuing pursuing its broad economic agenda to push reforms and take tangible steps towards its completion.