A latest survey conducted by industry body Assocham, has pointed that the Indian Inc is expecting to see growth by December in terms of sales and profitability even though fresh investments from the private sector continue to suffer due to under-utilisation of capacities.
As per the Assocham Bizcon survey, 65.5 per cent of the companies covered under its June series has said that the macroeconomic parameters are expected to look up by December on account of a robust monsoon. It also said that due to good monsoon, the consumer demand is likely to increase which can result in moderate interest rates considering the crude oil prices that continue to remain muted.
The survey also noted that, an equal percentage of the firms across different sectors feels that the performance at the industry level would also pick up with a consequence that there would be better sales realisation and improvement in profitability. According to the survey, 69 per cent of the respondents shared optimism about better prospects even at the individual firms’ level, translating into overall corporate earnings in the coming two quarters.
However, the survey also indicated that industry is not confident about the firm investment plans and the international investment plans as 37.9 per cent of respondents believe that domestic investment may increase or there will be no change in the short-term. In terms of the wage costs scenario 65.5 per cent of industry respondents feel that the wage costs will increase in future also. Also, the problem of high debt in certain key infrastructure and commodity sectors continues to stay there.