Financial Daily from THE HINDU group of publications
Thursday, May 09, 2002
Financial Daily from THE HINDU group of publications Thursday, May 09, 2002 |
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Economy Industry & Economy - Economy Industry sees recovery in 6 months: Survey Our Bureau
NEW DELHI, May 8 EVEN in the face of uncertainty after the Gujarat crisis, Indian industry is looking forward to economic rejuvenation over the next six months. This is reflected in the Federation of Indian Chambers of Commerce & Industry (FICCI) business confidence survey. As per the survey, the industry is quite optimistic about recovery prospects over the next six months with 86 per cent rating the prospects to be `good to average'. Almost 22 per cent said recovery prospects were good, and 64 per cent said they were average. The nationwide survey, covering 332 respondents, spanned a wide canvas of sectors including engineering, electronics, chemicals and pharmaceuticals, automobiles, textiles, constructions, IT, retail, finance, entertainment, steel and food processing. "This is in line with quarterly figures which show that overall growth rates of industry had picked up from 2.3 per cent in the first quarter to 2.5 per cent in the second quarter to 2.7 per cent in the third quarter and further to 3.1 per cent in the first two months of the fourth quarter of 2002,'' the survey said. Further, the results were quite positive on overall business confidence levels. About 38 per cent reported strong business confidence and 44 per cent reflected an average level of business confidence. Only 14 per cent reflected low business confidence, while four per cent showed a very strong level of confidence. The road to recovery seems to have already begun, with almost 40 per cent reporting an improved business performance compared to the last six months, according to the survey. As many as 33 per cent predicted `higher to much higher' profits over the next six months, while 43 per cent expected to retain their present margin. A significant 36 per cent reported plans for fresh investments over the next six months, the survey said. The survey showed that the industry's expectations of recovery prospects were related to some key parameters, which included sales, exports, investments, interest rates, etc. Further, among the factors seen as having strong correlation with business confidence levels were the Sensex and Budget 2002-03.
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