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 Federation of Indian Chambers of Commerce & Industry ( FICCI) 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 utilization 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 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 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. 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) added.
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