SME Times News Bureau | 08 Mar, 2021
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.
