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  3. Protectionist trends could have adverse impact on India’s export: FICCI survey

Protectionist trends could have adverse impact on India’s export: FICCI survey

02 May 2017 Evaluate

After witnessing drop previously due to the note ban, the Business Confidence level has seen a rebound in the Federation of Indian Chambers of Commerce and Industry’s (FICCI) latest Business Confidence Survey, touching an eight-quarter high. 54 per cent of the survey respondents said that the current economic conditions are much better than six months ago. Besides, 79 per cent feel the country’s economy will do even better in the next six months. Though it was found that the impact of demonetisation ebbed at a much faster pace than earlier anticipated, the survey cautioned that the protectionist trends gaining strength in the developed world could have an adverse impact on India’s export performance.

The survey of nearly 185 companies further stated that Indian industry is already grappling with low demand as most companies are not getting the benefit of credit flow at lower rates; around 67 per cent of the participants stated that they are unable to avail the benefit of credit flow at lower rates. On the other 65 per cent of the companies surveyed expect better sales performance during April to September 2017, while 42 per cent expect profits to increase and 40 per cent expect to invest more than their current investments levels. The survey further noted that 27 per cent of the companies plan to hire more number of employees.

As per the survey, 79 per cent of the participating companies expect the economy to do even better in the coming six months, while nearly 54 per cent feel that current economic conditions are moderately to substantially better compared to the previous six months. Moreover, 31 per cent expect the export demand to be better than what it is now.

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