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Slipping business confidence - all's not well with India Inc.
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Bikky Khosla | 19 Oct, 2010
It's sad to see the confidence of the Indian industry slipping recently with businessmen expressing concern over high interest rates, inflationary conditions, unavailability of labour, low consumer demand and rising cost of production. With the Indian festive season already on and Christmas and New Year just a couple of months away, slackening demand can indeed make the business community jittery.
The more I look at the findings of CII's 74th Business Outlook Survey, the more I feel that the quarter ending December will not be a healthy one in terms of performance as compared to the previous quarter.
The foremost reason which I feel is pulling down the business confidence of India Inc. is probably their anticipation that availability of credit will still remain a distant reality coupled with higher raw material prices. In addition another baneâprocedural delaysâis also not expected to decline in the coming months which makes businesses, especially exporters, skeptical of the situation.
The situation doesn't end here. Foreign capital inflows have led to a sharp rise in the rupee in the second half of 2010 and has now forced exporters to seek government intervention in curbing such inflows.
The anxiety of exporters is understable because they fear that if the rupee continues to appreciate like this, it would adversely impact their profitability as also their competitiveness. With the largest software exporter Infosys seeking the Reserve Bank of India's intervention in curbing the appreciating currency, one can understand the plight of small exporters.
The rising rupee is not only putting margins of domestic manufacturers under pressure, it is also putting pressure on exporters who stand to lose out on their future orders. I strongly believe that the RBI should intervene to halt heavy FII inflows to reduce the currency volatility.
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Slipping business confidence - all's not well with India Inc.
X | Wed Oct 27 05:36:38 2010
X
Pains of SME
Chandrashekhar Kulkarni | Wed Oct 20 08:37:48 2010
Problems of SME are basic problems such as poor quality management, poor quality manpower,poor cash flow, lack of govt support. Not inflow of foreign money and ruppee appreciation
slipping confidence
George B. | Wed Oct 20 04:30:57 2010
As I survey an Indian made Engine, I see that the quality has slipped even further than last year. Yes, the price has gone up for me considerably, and the quality has gone down to the point where I can no longer afford to sell such a poorly made machine.
I had high hopes that India would understand the importance of quality, but it looks hopeless from here...
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