FICCI : Industry's Voice for Policy Change

As the demand scenario improves and economic activities gather momentum, a FICCI survey shows that confidence among Indian businesses and entrepreneurs is significantly high and the business confidence index is at a decadal high.

The Overall Business Confidence Index stood at 74.2 in the current round, against the index value of 70.9 reported in the previous survey and 59 reported a year back.

“The recently announced Union Budget 2021-22 has been forward-looking. This together with measures announced as a part of the ‘Aatmanirbhar Bharat‘ package has infused optimism among the industry members and the same is corroborated in the improved outlook for various operational parameters,” said a statement by the industry body.

In the current survey, though the proportion of respondents anticipating better sale prospects in the near term remained unchanged at 66 per cent from the previous survey round.

However, the companies were buoyed to regain some control over pricing power.

Nearly 27 per cent respondents expect an increase in the selling price of their products over the next six months as compared to 21 per cent stating the same in the previous round and 14 per cent a year back.

The statement said improved economic conditions and greater pricing power is likely to drive profits of corporate India over the next two quarters. The percentage of participants citing higher profits over next six months increased to 36 per cent in the latest survey from 33 per cent respondents stating likewise in the previous round.

Further, the outlook on employment and exports also reported a discernible improvement. Nearly 35 per cent respondents were optimistic about better hiring prospects over the next two quarters (up from 22 per cent stating the same in the previous round).

Export prospects were also reported to be better in the current round with 41 per cent respondents indicating higher outbound shipments. The corresponding number in the previous round was 27 per cent.

Furthermore, the proportion of respondents citing ‘higher to much higher’ investments in the coming six months witnessed an upswing in the current survey when compared to the previous round. Nearly 31 per cent participants said they foresee ‘higher to much higher’ investments over coming six months as compared to 19 per cent participants stating likewise in the previous round.

The present survey drew responses from a wide array of sectors and was conducted during the months of January and February 2021. The survey gauges expectations of the respondents for the January to June 2021 period.

News18 | Mar 08, 2021

India Inc's Business Confidence Highest in Decade: FICCI Survey

FICCI’s Overall Business Confidence Index has witnessed a decadal high of74.2 in the current round on account of improvement in present conditions as well as expectations, the industry body said on Sunday. The Index had stood at70.9 in the previous survey and 59 a year ago, noted the survey. It revealed recovery of demand conditions, improved capacity utilisation and a promising outlook on various operational parameters.

With regard to the constraining factors for business, the demand situation has improved on back of the release of the pent-up demand build up during the lockdown. However, rising raw material costs is emerging as a bothersome factor for members of India Inc. The rise in fuel and other commodity prices is beginning to exert pressure on the input costs of companies, FICCI stated on the survey.

Companies participating in the survey cited high input costs including man power costs, weak demand conditions and lack of availability of affordable credit as their top-most concerns for the year 2021. A near-unanimity was observed as far as input costs were concerned. This along with high interest costs on loans, higher inward and outward transport and logistics costs, greater compliance burden on the back of frequently changing statutory compliances and increased manpower costs are further pushing the cost of doing business in India, FICCI stated.

This does not bode well in the current environment wherein a shift in global supply chains is being witnessed, it added. “In this context, respondents also added that leaving trade policy issues unaddressed will create an even bigger challenge with China as well as other countries including Vietnam regaining market share to become global suppliers.

“Lack of adequate export incentives is also making it difficult for Indian entrepreneurs to compete globally,” the Federation of Indian Chambers of Commerce and Industry (FICCI) stated. Improvement in conditions as well as expectations have pulled the Overall Business Confidence Index value to a decadal high in the current survey, FICCI said.

The Union Budget 2021-22 has been forward looking, said FICCI. This, together with measures announced as part of the Atmanirbhar Bharat package, has infused optimism among industry members and the same is corroborated in the improved outlook for various operational parameters, it added.

Improved economic conditions and greater pricing power are likely to drive profits of corporate India over the next two quarters. The percentage of participants citing higher profits over next six months increased to 36 per cent in the latest survey from 33 per cent respondents stating likewise in the previous round, the survey showed. Outlook on employment and exports also reported a discernible improvement, as about 35 per cent respondents were optimistic about better hiring prospects over the next two quarters, up from 22 per cent stating the same in the previous round.

Export prospects were reported to be better in the current round with 41 per cent respondents, indicating higher outbounds shipments. The corresponding number in the previous round was 27 per cent. Furthermore, the proportion of respondents citing ‘higher to much higher’ investments in the coming six months witnessed an upswing in the current survey when compared to the previous round.

With demand situation slowly turning positive, an improvement was also noticed in capacity utilisation rates. In the current survey, around 77 per cent participating companies reported capacity utilisation of more than 50 per cent, compared with 68 per cent stating likewise in the previous round. Companies expect higher export orders in the coming months on the back of global economic recovery led by large scale vaccination drive against COVID-19 around the world.

Respondents emphasised that given the current global sentiment, India could easily become the preferred sourcing destination for western countries if adequate and timely steps taken to support this change. In addition, companies stressed the need for reducing customs duty on imports to curtail rising domestic prices of raw materials. Commodity prices have risen drastically in the past few weeks and this is impacting profitability and viability of business.

Participants highlighted that restrictions on imports must be removed at least until India achieves some level of self reliance in production of industrial inputs such as components and parts. The current survey drew responses from a wide array of sectors and was conducted during January and February this year. It gauges expectations for the period January to June 2021.

Money Control | Mar 08, 2021

Business confidence in India at decade high of 74.2, shows FICCI Survey

Business confidence in India has risen 3.3 points to 74.2 compared to 70.9 in the previous survey, due to “expectations, improved demand, improved capacity utilisation, and promising outlook on operational parameters,” the Federation of Indian Chambers of Commerce & Industry (FICCI) said.

Notably, the industry body’s Overall Business Confidence Index saw a 15.2 points jump over last year’s 59, it said on March 7.

On constraints, it noted that demand has largely regained due to pent-up demand during the lockdown, and rising raw material costs – such as fuel and other commodities is “emerging as a bothersome factor” for India Inc. and is “exerting pressure on the input costs of companies.”

Survey participants “near-unanimity” cited high input cost as a top concern for 2021. Particular factors for this were lack of affordable credit, manpower expenses and weak demand conditions.

“This along with high interest costs on loans, higher inward and outward transport and logistics costs, greater compliance burden on the back of frequently changing statutory compliances and increased manpower costs are further pushing the cost of doing business in India,” FICCI stated.

The body noted that concerns “do not bode well in the current environment” as the global supply chains shift and respondents pointed out that unaddressed trade policy issues could create “even bigger challenge with China and others include Vietnam” for market share.

Another concern noted was “lack of adequate export incentives,” which is making it difficult for Indian entrepreneurs to compete globally.

However, improvement in conditions and expectations from a “forward looking Union Budget 2021” and the Atmanirbhar Bharat packages have “infused optimism” leading the index to a decade high, FICCI added.

The body also noted that improved economic conditions and greater pricing power are “likely to drive corporate India’s profits for the next two quarters” as 36 percent respondents cited increased profits this time, compared to 33 percent in the previous round.

“Discernible improvement” was also noted in regards to employment with 35 percent participants being “optimistic” over hiring prospects in the next two quarters, from 22 percent earlier.

For exports, 41 percent reported “better” and higher outbound shipments compared to 27 percent in the earlier round. Further, participants reporting “higher to much higher investment” also rose.

In terms of capacity utilisation rates, the current survey had 77 percent reporting over 50 percent rates, compared to 68 percent earlier.

Companies also expect export demand to jump in the coming months as more people get vaccinated against COVID-19.

Many respondents felt India could “easily become the next preferred sourcing destination for western countries if adequate and timely steps taken to support this change.”

Among the changes required, most listed reduction in customs duty on imports to curtail raw material prices – at least until India achieves some level of self-reliance in production of industrial inputs such as components and parts.

The survey was conducted in January-February 2021 and gauged expectations for the January-June 2021 period, it added.

AIR News | Mar 08, 2021

India Inc's business confidence highest in decade: FICCI Survey

The Federation of Indian Chambers of Commerce and Industry (FICCI) has said that India Inc's business confidence is at the highest level of the past decade. The industry yesterday said that its Overall Business Confidence Index has witnessed a decadal high of 74.2 on account of improvement in present business conditions.

The Index had stood at 70.9 in 2020 and 59 in 2019. The FICCI's survey revealed that the recovery of demand conditions, improved capacity utilization and a promising outlook on key operational parameters have boosted the business confidence. The demand situation has improved on the back of the release of the pent-up demand build-up during the lockdown.

According to the survey, factors like improved economic conditions and greater pricing power are likely to prove profitable for corporates. The survey stated that the percentage of participants citing higher profits over the next six months has increased to 36 per cent from 33 per cent in the last survey.

While 35 per cent of respondents were optimistic about better hiring prospects over the next two quarters, as many as 41 per cent of companies expect higher export orders in the coming months on the back of global economic recovery.

First Post | Mar 08, 2021

India Inc's overall Business Confidence Index highest in decade at 74.2, shows FICCI Survey

FICCI's Overall Business Confidence Index has witnessed a decadal high of 74.2 in the current round on account of improvement in present conditions as well as expectations, the industry body said on Sunday.

The Index had stood at 70.9 in the previous survey and 59 a year ago, noted the survey. It revealed recovery of demand conditions, improved capacity utilisation and a promising outlook on various operational parameters.

With regard to the constraining factors for business, the demand situation has improved on the back of the release of the pent-up demand build up during the lockdown.

However, rising raw material costs are emerging as a bothersome factor for members of India Inc. The rise in fuel and other commodity prices is beginning to exert pressure on the input costs of companies, FICCI stated in the survey.

Companies participating in the survey cited high input costs including manpower costs, weak demand conditions and lack of availability of affordable credit as their top-most concerns for the year 2021.

A near-unanimity was observed as far as input costs were concerned. This along with high-interest costs on loans, higher inward and outward transport and logistics costs, the greater compliance burden on the back of frequently changing statutory compliances and increased manpower costs are further pushing the cost of doing business in India, FICCI stated.

This does not bode well in the current environment wherein a shift in global supply chains is being witnessed, it added.

"In this context, respondents also added that leaving trade policy issues unaddressed will create an even bigger challenge with China as well as other countries including Vietnam regaining market share to become global suppliers.

"Lack of adequate export incentives is also making it difficult for Indian entrepreneurs to compete globally," the Federation of Indian Chambers of Commerce and Industry (FICCI) stated.

Improvement in conditions, as well as expectations, have pulled the Overall Business Confidence Index value to a decadal high in the current survey, FICCI said.

The Union Budget 2021-22 has been forward-looking, said FICCI.

This, together with measures announced as part of the Atmanirbhar Bharat package, has infused optimism among industry members and the same is corroborated in the improved outlook for various operational parameters, it added.

Improved economic conditions and greater pricing power are likely to drive profits of corporate India over the next two quarters. The percentage of participants citing higher profits over the next six months increased to 36 percent in the latest survey from 33 percent respondents stating likewise in the previous round, the survey showed.

Outlook on employment and exports also reported a discernible improvement, as about 35 percent of respondents were optimistic about better hiring prospects over the next two quarters, up from 22 percent stating the same in the previous round.

Export prospects were reported to be better in the current round with 41 per cent respondents, indicating higher outbounds shipments. The corresponding number in the previous round was 27 percent.

Furthermore, the proportion of respondents citing ''higher to much higher'' investments in the coming six months witnessed an upswing in the current survey when compared to the previous round.

With the demand situation slowly turning positive, an improvement was also noticed in capacity utilisation rates. In the current survey, around 77 per cent of participating companies reported capacity utilisation of more than 50 per cent, compared with 68 per cent stating likewise in the previous round.

Companies expect higher export orders in the coming months on the back of global economic recovery led by large scale vaccination drive against COVID-19 around the world.

Respondents emphasised that given the current global sentiment, India could easily become the preferred sourcing destination for western countries if adequate and timely steps taken to support this change.

In addition, companies stressed the need for reducing customs duty on imports to curtail rising domestic prices of raw materials. Commodity prices have risen drastically in the past few weeks and this is impacting the profitability and viability of the business.

Participants highlighted that restrictions on imports must be removed at least until India achieves some level of self-reliance in the production of industrial inputs such as components and parts.

The current survey drew responses from a wide array of sectors and was conducted during January and February this year. It gauges expectations for the period of January to June 2021.

SME Times | Mar 08, 2021

Business confidence touches decadal high: Survey

As the demand scenario improves and economic activities gather momentum, a FICCI survey shows that confidence among Indian businesses and entrepreneurs is significantly high and the business confidence index is at a decadal high.

The Overall Business Confidence Index stood at 74.2 in the current round, against the index value of 70.9 reported in the previous survey and 59 reported a year back.

"The recently announced Union Budget 2021-22 has been forward looking. This together with measures announced as a part of the 'Aatmanirbhar Bharat' package has infused optimism among the industry members and the same is corroborated in the improved outlook for various operational parameters," said a statement by the industry body.

In the current survey, though the proportion of respondents anticipating better sale prospects in the near term remained unchanged at 66 per cent from the previous survey round.

However, the companies were buoyed to regain some control over pricing power.

Nearly 27 per cent respondents expect an increase in the selling price of their products over the next six months as compared to 21 per cent stating the same in the previous round and 14 per cent a year back.

The statement said improved economic conditions and greater pricing power is likely to drive profits of corporate India over the next two quarters. The percentage of participants citing higher profits over next six months increased to 36 per cent in the latest survey from 33 per cent respondents stating likewise in the previous round.

Further, the outlook on employment and exports also reported a discernible improvement. Nearly 35 per cent respondents were optimistic about better hiring prospects over the next two quarters (up from 22 per cent stating the same in the previous round).

Export prospects were also reported to be better in the current round with 41 per cent respondents indicating higher outbound shipments. The corresponding number in the previous round was 27 per cent.

Furthermore, the proportion of respondents citing 'higher to much higher' investments in the coming six months witnessed an upswing in the current survey when compared to the previous round. Nearly 31 per cent participants said they foresee 'higher to much higher' investments over coming six months as compared to 19 per cent participants stating likewise in the previous round.

The present survey drew responses from a wide array of sectors and was conducted during the months of January and February 2021. The survey gauges expectations of the respondents for the January to June 2021 period.

The Sentinel | Mar 08, 2021

Business confidence in India touches decadal high: FICCI

As the demand scenario improves and economic activities gather momentum, a FICCI survey shows that confidence among Indian businesses and entrepreneurs is significantly high and the business confidence index is at a decadal high. The Overall Business Confidence Index stood at 74.2 in the current round, against the index value of 70.9 reported in the previous survey and 59 reported a year back.

"The recently announced Union Budget 2021-22 has been forward looking. This together with measures announced as a part of the 'Aatmanirbhar Bharat' package has infused optimism among the industry members and the same is corroborated in the improved outlook for various operational parameters," said a statement by the industry body.

In the current survey, though the proportion of respondents anticipating better sale prospects in the near term remained unchanged at 66 per cent from the previous survey round.

However, the companies were buoyed to regain some control over pricing power.

Nearly 27 per cent respondents expect an increase in the selling price of their products over the next six months as compared to 21 per cent stating the same in the previous round and 14 per cent a year back.

The statement said improved economic conditions and greater pricing power is likely to drive profits of corporate India over the next two quarters. The percentage of participants citing higher profits over next six months increased to 36 per cent in the latest survey from 33 per cent respondents stating likewise in the previous round.

Further, the outlook on employment and exports also reported a discernible improvement. Nearly 35 per cent respondents were optimistic about better hiring prospects over the next two quarters (up from 22 per cent stating the same in the previous round). Export prospects were also reported to be better in the current round with 41 per cent respondents indicating higher outbound shipments. The corresponding number in the previous round was 27 per cent.

Furthermore, the proportion of respondents citing 'higher to much higher' investments in the coming six months witnessed an upswing in the current survey when compared to the previous round. Nearly 31 per cent participants said they foresee 'higher to much higher' investments over coming six months as compared to 19 per cent participants stating likewise in the previous round. The present survey drew responses from a wide array of sectors and was conducted during the months of January and February 2021. The survey gauges expectations of the respondents for the January to June 2021 period.

India News Republic | Mar 08, 2021

India Inc’s 10 Years Highest Business Confidence: FICCI Survey

Industry groups said on Sunday that FICCI’s overall business sentiment index witnessed a 10-year high of 74.2 in the current round due to improvements and expectations. The previous survey had an index of 70.9, which was 59 a year ago, the survey said. It reveals promising prospects for recovery in demand, improved utilization and various operational parameters.

As a limiting factor for the business, the demand situation improved as the stagnation of demand accumulated during the blockade was resolved. However, rising raw material costs have emerged as a thorny factor for members of India Inc. Rising fuel and other commodity prices are beginning to put pressure on companies’ input costs, FICCI said in a study.

Companies that participated in the survey cited high input costs such as labor costs, low demand, and lack of affordable credit as their biggest concerns in 2021. As far as the input cost is concerned, there is almost a match. In addition to this, high interest rates on loans, increased domestic and international transportation and logistics costs, increased compliance burden due to frequently changing statutory compliance, and increased labor costs further boost the cost of doing business in India. FICCI says.

He added that this is not a good sign in the current environment where changes in the global supply chain are being witnessed. “In this regard, respondents also face the greater challenge of regaining market share and becoming a global supplier, not only in China but also in other countries, including Vietnam, if left unaddressed with trade policy issues. He added that it would produce.

“The lack of adequate export incentives also makes it difficult for Indian entrepreneurs to compete globally,” said the Federation of Indian Chambers of Commerce and Industry (FICCI). According to FICCI, improved conditions and expectations have resulted in the highest overall business sentiment index in 10 years in this survey.

According to FICCI, the combined budget for 2021-22 was positive. He added that this, along with the measures announced as part of the Atmanirbhar Bharat package, gave industry members optimism and confirmed the same in improving the outlook for various operational parameters.

Improving economic conditions and improving pricing power could boost the profits of Indian companies in the next two quarters. According to a recent survey, a recent survey found that the percentage of participants who were making higher profits in the next six months increased from 33%, who said the same in the previous round, to 36%. The employment and export outlook also reported a visible improvement. Approximately 35% of respondents were optimistic about improving their employment outlook in the next two quarters, compared to 22% who said they were the same in the previous round.

In the current round, 41% of respondents reported improving their export outlook, indicating high outbound shipments. The corresponding number in the previous round was 27 percent. In addition, the percentage of respondents who cited “higher” to “much higher” investments over the next six months showed an increase in this survey when compared to the previous round.

While the demand situation gradually turned positive, the utilization rate also improved. In the current survey, about 77% of participating companies reported occupancy rates in excess of 50%, compared to 68%, which was also mentioned in the previous round. Companies expect export orders to increase in the coming months against the backdrop of a global economic recovery driven by the promotion of large-scale vaccination against COVID-19 worldwide.

Respondents emphasized that given the current global sentiment, India could be a good source for Western countries if appropriate and timely measures are taken to support this change. .. In addition, companies emphasized the need to reduce tariffs on imported goods in order to curb the rise in domestic prices of raw materials. Commodity prices have risen significantly in the last few weeks, impacting the profitability and viability of the business.

Participants emphasized that import restrictions must be lifted, at least until India achieves some degree of independence in the production of industrial inputs such as parts and parts. This survey received responses from various fields and was conducted in January and February of this year. Measure your forecast for the period January-June 2021.

Money9 | Mar 08, 2021

FICCI survey reveals good news for jobseekers, check out details

Growth without jobs is like having butter without the bread – there is no platform to share the goodies with. It is precisely for this reason that everyone is looking out for job creation possibilities as the economy is showing some early signs of shattering the shackles of the pandemic.

On March 8, leading chamber of commerce FICCI unveiled the results of a survey conducted in Q3 among its members. It announced a business confidence that is highest in the past one decade, recording the most powerful endorsement so far of the government’s claim that the economy is on the recovery path.

Recording an improvement on the employment generation scenario, the survey noted, “About 35% respondents were optimistic about better hiring prospects over the next two quarters (up from 22% stating the same in the previous round).”

There is another indication in the survey that might have a positive fallout on the hiring possibilities.

|“The proportion of respondents citing ‘higher to much higher’ investments in the coming six months witnessed an upswing in the current survey when compared to the previous round. 31% participants said that they foresee higher to much higher investments over coming six months as compared to 19% participants stating likewise in the previous round,” read the report.

The macro constraints to job creation are mostly due to factors that are almost completely beyond the private sector to address – lack of demand for consumption.

“… even though demand conditions have been improving according to the results of our latest survey, yet over half of the participating companies continued to report subdued domestic demand situation as a major constraint. Around 56% of participating companies cited weak demand as a bothersome factor for their business in the latest round. Even though this is the lowest in about nine quarters, nonetheless the proportion of participating companies affected by it remains significant.”

The CSO figures of the economy released in the last week of February put private consumption expenditure in the October-December quarter at (-)2.3% though it was an improvement from (-)11% when it had contracted by 11%.

The implication is clear – if demand picks up in the economy, it might provide some tailwind to employment generation.

The chamber has also listed out eight challenges to look out for in 2021. Some of these are high input costs, high logistics cost and credit costs. Among these it has also mentioned “availability/retention of skilled workers.”

According to a recent report by Deloitte India compiled after surveying 400 companies, 92% of the respondents said that they are going to offer increment to their employees, the average rate being 7.2%.

The sectors surveyed by Deloitte are consumer products (7.6% increment), financial services (7.3%), information technology (8.6%), information technology-enabled services (7.6%), life sciences (9.2%), manufacturing (6.8%), services (5.9%). The obvious surprise in the pack being the services sector that was hit as a whole by the pandemic the most.

Even in the Q3 figures of the economy released by the government, the services sector (trade, hotels, transportation, communication, services related to broadcasting) continued to be one of the worst-hit, recording a contraction of 7.7%.

At the top end of the job pyramid, IIT Bangalore and IIT Kharagpur have already reported encouraging campus placements.

Job portals such as Naukri and Monster India too have reported rising hiring figures in certain sectors.

While Naukri JobSpeak index registered a growth of 22% in hiring in February 2021 compared to January 2021, Monster Employment Index recorded a growth of 6% over the same period.

Centre for Monitoring Indian Economy data stated though the unemployment rate of 6.9% in February 2021 was slightly higher than 6.5% in January 2021 but it was a whole lot better than 9.1% in December.

Moreover, the February 2021 unemployment rate was lower than 7.6% that was the average for the period between July 2020 and February 2021.

The February 2021 unemployment rate was also lower than the pre-lockdown level of 7.8% recorded in February 2020.

KNN | Mar 08, 2021

FICCI's Overall Business Confidence Index has witnessed a decadal high of 74.2

FICCI's Overall Business Confidence Index has witnessed a decadal high of 74.2 in the current round on account of improvement in present conditions as well as expectations, the industry body said.

The Overall Business Confidence Index stood at 74.2 in the current round, vis-à-vis the index value of 70.9 reported in the previous survey and 59.0 reported a year back. It revealed recovery of demand conditions, improved capacity utilisation and a promising outlook on various operational parameters.

''This together with measures announced as a part of the Atmanirbhar Bharat package has infused optimism amongst industry members and the same is corroborated in the improved outlook for various operational parameters,'' it added.

With regard to the constraining factors for business, the demand situation has improved on back of the release of pent-up demand built up during the lockdown.

However, rising raw material costs is emerging as a bothersome factor for members of India Inc. The rise in fuel and other commodity prices is beginning to exert pressure on the input costs of companies.

In the current survey, though the proportion of respondents anticipating better sales prospects in the near term remained unchanged at 66 per cent from the previous survey round; however, the companies were buoyed to regain some control over pricing power. About 27 per cent respondents expect an increase in the selling price of their products over the next six months as compared to 21 per cent stating the same in the previous round and 14 per cent a year back.

Improved economic conditions and greater pricing power is likely to drive profits of corporate India over the next two quarters. The percentage of participants citing higher profits over the next six months increased to 36 per cent in the latest survey from 33 per cent respondents stating likewise in the previous round.

Outlook on employment and exports also reported a discernible improvement. About 35 per cent respondents were optimistic about better hiring prospects over the next two quarters (up from 22 per cent stating the same in the previous round). Export prospects were also reported to be better in the current round with 41 per cent respondents indicating higher outbounds shipments. The corresponding number in the previous round was 27 per cent.

Furthermore, the proportion of respondents citing ‘higher to much higher’ investments in the coming six months witnessed an upswing in the current survey when compared to the previous round.

''31 per cent participants said that they foresee higher to much higher investments over coming six months as compared to 19 per cent participants stating likewise in the previous round,'' the survey stated.

The present survey drew responses from a wide array of sectors and was conducted during the months of January/February 2021. The survey gauges expectations of the respondents for the period January to June 2021.

NewsX24 | Mar 08, 2021

India Inc’s Enterprise Confidence Highest in Decade: FICCI Survey

FICCI’s General Enterprise Confidence Index has witnessed a decadal excessive of74.2 within the present spherical on account of enchancment in current circumstances in addition to expectations, the business physique mentioned on Sunday. The Index had stood at70.9 within the earlier survey and 59 a 12 months in the past, famous the survey. It revealed restoration of demand circumstances, improved capability utilisation and a promising outlook on varied operational parameters.

With regard to the constraining elements for enterprise, the demand state of affairs has improved on again of the discharge of the pent-up demand construct up in the course of the lockdown. Nevertheless, rising uncooked materials prices is rising as a bothersome issue for members of India Inc. The rise in gasoline and different commodity costs is starting to exert stress on the enter prices of firms, FICCI said on the survey.

Corporations taking part within the survey cited excessive enter prices together with man energy prices, weak demand circumstances and lack of availability of reasonably priced credit score as their top-most issues for the 12 months 2021. A near-unanimity was noticed so far as enter prices had been involved. This together with excessive curiosity prices on loans, larger inward and outward transport and logistics prices, larger compliance burden on the again of regularly altering statutory compliances and elevated manpower prices are additional pushing the price of doing enterprise in India, FICCI said.

This doesn’t bode properly within the present setting whereby a shift in international provide chains is being witnessed, it added. “On this context, respondents additionally added that leaving commerce coverage points unaddressed will create an excellent greater problem with China in addition to different international locations together with Vietnam regaining market share to turn into international suppliers.

“Lack of ample export incentives can be making it tough for Indian entrepreneurs to compete globally,” the Federation of Indian Chambers of Commerce and Trade (FICCI) said. Enchancment in circumstances in addition to expectations have pulled the General Enterprise Confidence Index worth to a decadal excessive within the present survey, FICCI mentioned.

The Union Finances 2021-22 has been ahead wanting, mentioned FICCI. This, along with measures introduced as a part of the Atmanirbhar Bharat bundle, has infused optimism amongst business members and the identical is corroborated within the improved outlook for varied operational parameters, it added.

Improved financial circumstances and larger pricing energy are prone to drive income of company India over the following two quarters. The proportion of contributors citing larger income over subsequent six months elevated to 36 per cent within the newest survey from 33 per cent respondents stating likewise within the earlier spherical, the survey confirmed. Outlook on employment and exports additionally reported a discernible enchancment, as about 35 per cent respondents had been optimistic about higher hiring prospects over the following two quarters, up from 22 per cent stating the identical within the earlier spherical.

Export prospects had been reported to be higher within the present spherical with 41 per cent respondents, indicating larger outbounds shipments. The corresponding quantity within the earlier spherical was 27 per cent. Moreover, the proportion of respondents citing ‘larger to a lot larger’ investments within the coming six months witnessed an upswing within the present survey when in comparison with the earlier spherical.

With demand state of affairs slowly turning optimistic, an enchancment was additionally seen in capability utilisation charges. Within the present survey, round 77 per cent taking part firms reported capability utilisation of greater than 50 per cent, in contrast with 68 per cent stating likewise within the earlier spherical. Corporations count on larger export orders within the coming months on the again of worldwide financial restoration led by giant scale vaccination drive in opposition to COVID-19 around the globe.

Respondents emphasised that given the present international sentiment, India may simply turn into the popular sourcing vacation spot for western international locations if ample and well timed steps taken to help this modification. As well as, firms confused the necessity for decreasing customs responsibility on imports to curtail rising home costs of uncooked supplies. Commodity costs have risen drastically up to now few weeks and that is impacting profitability and viability of enterprise.

Contributors highlighted that restrictions on imports have to be eliminated a minimum of till India achieves some stage of self reliance in manufacturing of business inputs equivalent to parts and components. The present survey drew responses from a big selection of sectors and was performed throughout January and February this 12 months. It gauges expectations for the interval January to June 2021.

News Matters | Mar 08, 2021

India Inc’s business confidence highest in decade: FICCI Survey

FICCI’s Total Enterprise Confidence Index has witnessed a decadal excessive of 74.2 within the present spherical on account of enchancment in current situations in addition to expectations, the trade physique mentioned on Sunday.

The Index had stood at 70.9 within the earlier survey and 59 a yr in the past, famous the survey. It revealed restoration of demand situations, improved capability utilisation and a promising outlook on numerous operational parameters.

With regard to the constraining elements for enterprise, the demand scenario has improved on again of the discharge of the pent-up demand construct up through the lockdown.

Nonetheless, rising uncooked materials prices is rising as a bothersome issue for members of India Inc. The rise in gasoline and different commodity costs is starting to exert stress on the enter prices of corporations, FICCI acknowledged on the survey.

Corporations taking part within the survey cited excessive enter prices together with man energy prices, weak demand situations and lack of availability of reasonably priced credit score as their top-most considerations for the yr 2021.

A near-unanimity was noticed so far as enter prices had been involved. This together with excessive curiosity prices on loans, larger inward and outward transport and logistics prices, larger compliance burden on the again of steadily altering statutory compliances and elevated manpower prices are additional pushing the price of doing enterprise in India, FICCI acknowledged.

This doesn’t bode nicely within the present setting whereby a shift in international provide chains is being witnessed, it added.

“On this context, respondents additionally added that leaving commerce coverage points unaddressed will create an excellent greater problem with China in addition to different international locations together with Vietnam regaining market share to grow to be international suppliers.

“Lack of enough export incentives can be making it troublesome for Indian entrepreneurs to compete globally,” the Federation of Indian Chambers of Commerce and Trade (FICCI) acknowledged.

Enchancment in situations in addition to expectations have pulled the Total Enterprise Confidence Index worth to a decadal excessive within the present survey, FICCI mentioned.

The Union Price range 2021-22 has been ahead wanting, mentioned FICCI.

This, along with measures introduced as a part of the Atmanirbhar Bharat package deal, has infused optimism amongst trade members and the identical is corroborated within the improved outlook for numerous operational parameters, it added.

Improved financial situations and larger pricing energy are prone to drive income of company India over the following two quarters. The proportion of individuals citing larger income over subsequent six months elevated to 36 per cent within the newest survey from 33 per cent respondents stating likewise within the earlier spherical, the survey confirmed.

Outlook on employment and exports additionally reported a discernible enchancment, as about 35 per cent respondents had been optimistic about higher hiring prospects over the following two quarters, up from 22 per cent stating the identical within the earlier spherical.

Export prospects had been reported to be higher within the present spherical with 41 per cent respondents, indicating larger outbounds shipments. The corresponding quantity within the earlier spherical was 27 per cent.

Moreover, the proportion of respondents citing ‘larger to a lot larger’ investments within the coming six months witnessed an upswing within the present survey when in comparison with the earlier spherical.

With demand scenario slowly turning optimistic, an enchancment was additionally seen in capability utilisation charges. Within the present survey, round 77 per cent taking part corporations reported capability utilisation of greater than 50 per cent, in contrast with 68 per cent stating likewise within the earlier spherical.

Corporations anticipate larger export orders within the coming months on the again of worldwide financial restoration led by massive scale vaccination drive towards COVID-19 around the globe.

Respondents emphasised that given the present international sentiment, India might simply grow to be the popular sourcing vacation spot for western international locations if enough and well timed steps taken to assist this modification.

As well as, corporations confused the necessity for lowering customs obligation on imports to curtail rising home costs of uncooked supplies. Commodity costs have risen drastically up to now few weeks and that is impacting profitability and viability of enterprise.

Contributors highlighted that restrictions on imports should be eliminated a minimum of till India achieves some degree of self reliance in manufacturing of business inputs equivalent to parts and components.

The present survey drew responses from a big selection of sectors and was carried out throughout January and February this yr. It gauges expectations for the interval January to June 2021.

News104 | Mar 08, 2021

India Inc’s Enterprise Confidence Highest In Decade: FICCI Survey

FICCI’s Total Enterprise Confidence Index has witnessed a decadal excessive of74.2 within the present spherical on account of enchancment in current circumstances in addition to expectations, the business physique stated on Sunday. The Index had stood at70.9 within the earlier survey and 59 a yr in the past, famous the survey. It revealed restoration of demand circumstances, improved capability utilisation and a promising outlook on varied operational parameters.

With regard to the constraining components for enterprise, the demand state of affairs has improved on again of the discharge of the pent-up demand construct up in the course of the lockdown. Nevertheless, rising uncooked materials prices is rising as a bothersome issue for members of India Inc. The rise in gasoline and different commodity costs is starting to exert strain on the enter prices of firms, FICCI said on the survey.

Firms collaborating within the survey cited excessive enter prices together with man energy prices, weak demand circumstances and lack of availability of inexpensive credit score as their top-most considerations for the yr 2021. A near-unanimity was noticed so far as enter prices have been involved. This together with excessive curiosity prices on loans, larger inward and outward transport and logistics prices, better compliance burden on the again of steadily altering statutory compliances and elevated manpower prices are additional pushing the price of doing enterprise in India, FICCI said.

This doesn’t bode properly within the present setting whereby a shift in world provide chains is being witnessed, it added. “On this context, respondents additionally added that leaving commerce coverage points unaddressed will create a fair larger problem with China in addition to different international locations together with Vietnam regaining market share to develop into world suppliers.

“Lack of enough export incentives can also be making it troublesome for Indian entrepreneurs to compete globally,” the Federation of Indian Chambers of Commerce and Business (FICCI) said. Enchancment in circumstances in addition to expectations have pulled the Total Enterprise Confidence Index worth to a decadal excessive within the present survey, FICCI stated.

The Union Finances 2021-22 has been ahead wanting, stated FICCI. This, along with measures introduced as a part of the Atmanirbhar Bharat bundle, has infused optimism amongst business members and the identical is corroborated within the improved outlook for varied operational parameters, it added.

Improved financial circumstances and better pricing energy are more likely to drive income of company India over the subsequent two quarters. The proportion of contributors citing larger income over subsequent six months elevated to 36 per cent within the newest survey from 33 per cent respondents stating likewise within the earlier spherical, the survey confirmed. Outlook on employment and exports additionally reported a discernible enchancment, as about 35 per cent respondents have been optimistic about higher hiring prospects over the subsequent two quarters, up from 22 per cent stating the identical within the earlier spherical.

Export prospects have been reported to be higher within the present spherical with 41 per cent respondents, indicating larger outbounds shipments. The corresponding quantity within the earlier spherical was 27 per cent. Moreover, the proportion of respondents citing ‘larger to a lot larger’ investments within the coming six months witnessed an upswing within the present survey when in comparison with the earlier spherical.

With demand state of affairs slowly turning optimistic, an enchancment was additionally observed in capability utilisation charges. Within the present survey, round 77 per cent collaborating firms reported capability utilisation of greater than 50 per cent, in contrast with 68 per cent stating likewise within the earlier spherical. Firms anticipate larger export orders within the coming months on the again of world financial restoration led by giant scale vaccination drive towards COVID-19 world wide.

Respondents emphasised that given the present world sentiment, India may simply develop into the popular sourcing vacation spot for western international locations if enough and well timed steps taken to assist this transformation. As well as, firms burdened the necessity for lowering customs obligation on imports to curtail rising home costs of uncooked supplies. Commodity costs have risen drastically prior to now few weeks and that is impacting profitability and viability of enterprise.

Contributors highlighted that restrictions on imports have to be eliminated at the least till India achieves some degree of self reliance in manufacturing of business inputs comparable to elements and elements. The present survey drew responses from a big selection of sectors and was performed throughout January and February this yr. It gauges expectations for the interval January to June 2021.

Bhaskar Live | Mar 08, 2021

Business confidence in India touches decadal high: FICCI

As the demand scenario improves and economic activities gather momentum, a FICCI survey shows that confidence among Indian businesses and entrepreneurs is significantly high and the business confidence index is at a decadal high.

The Overall Business Confidence Index stood at 74.2 in the current round, against the index value of 70.9 reported in the previous survey and 59 reported a year back.

“The recently announced Union Budget 2021-22 has been forward looking. This together with measures announced as a part of the ‘Aatmanirbhar Bharat’ package has infused optimism among the industry members and the same is corroborated in the improved outlook for various operational parameters,” said a statement by the industry body.