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Indian Industry likely to witness weak demand in next 3 months: FICCI survey

28 Mar 2014 Evaluate

Presenting a sluggish outlook of Indian industry, FICCI’s Business Confidence Survey has noted that the industry may witness a weak demand and bleak employment scenario over the next 3 months beleaguered by economic slowdown and prevailing high interest rates. The survey found that despite rising input costs, the availability of credit has also become a problem for the India Inc with almost 53 percent of the companies covered by the survey felt that high cost of credit was creating a problem for them.

The survey found that around 56 percent of the companies indicated that demand has declined by over 10 percent and very few respondents cited an improvement in current performance, as against the last six months. During the period April-January 2013-14, India’s industrial output growth remained flat from a year earlier. FICCI also found negligible improvement in outlook for the coming months with only 24 percent of the companies receiving investments over the next six months. The overall Business Confidence Index value increased to 60.8 in the current survey as compared to 59.8 in the last survey round. Around 67 percent firms expected stagnant employment levels for the next six months.

The FICCI’s survey was based on the responses of about 173 companies having turnover ranging from Rs 1 crore to Rs 3.7 lakh crore in order to bring out expectations of the industry for the period January-June 2014. The survey covered companies belonging to various sectors such as textiles, cement, financial services, chemicals, construction, metal and metal products, automobiles, FMCG, electrical equipment and machinery, paper and paper products.

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