India’s economic situation to improve significantly in coming six months: ASSOCHAM

In a latest survey of ASSOCHAM Bizcon it was revealed that India’s economic situation is likely to improve significantly at all the three critical- macro, industry and firm levels in the coming six months. Despite the fact that as of now, domestic demand remains weak and the global markets stay uncertain. But the industry seems to feel that the slowdown has bottomed out. 

It was a comprehensive round of survey where 300 CEOs engaged in different sectors such as manufacturing, finance, real estates and IT were surveyed in the month of September. Gauging and reflecting the mood of the business and the industry, the Survey found that though the situation on the ground did not change in the last six months, prospects have improved for the next two quarters.

Majority of respondents said they expect overall economic situation would be better and their performance will also improve in the coming six months. The most optimistic outlook, however, came from the respondents, who said the state of affairs will improve between September, 2012 and February-March, 2013. At the firm level, 65 per cent of the respondents felt that the selling price will remain more or less same.

However, indicating that India Inc may face pressure to maintain their profitability, only 41.7 per cent felt that their profits are going to be pretty much at current levels in short term. On the same time concern of high cost of credit too was on forefront and 79 percent were of view that it is bound to affect their functioning adversely and they said the situation will be much better if interest rates are cut by the RBI. 

79 percent of the survey respondents were of the view that the rise in input price will have an adverse impact on their operations, while 66.7 percent of the respondents expect their firm’s order books position to improve in the coming six months.