New Delhi:- India's economy is more resilient than many of the world's major economies amid heightened global uncertainty, a CII report shows. The report said the economic growth momentum was maintained by the favorable domestic political environment and healthy performance of key macroeconomic indicators.
The CII Business Confidence Index (CII-BCI) improved to 66.1 in the first quarter (April-June 2024) compared to 64.0 in the previous quarter, with indicators such as the GST survey and air and rail passenger numbers showing positive momentum.
Sixty-three percent (63%) of more than 180 companies surveyed in the Business Outlook Survey expect India's GDP growth to be 6-7% in FY2024, which is the RBI's forecast for this year is similar to the projected growth rate of 6.5%.
Also Read:- GST Council to Deliberate Taxation under ONDC in Upcoming Meeting
Eighty-six percent of respondents expect inflation to be below 6% in FY24, which is in line with the RBI's 5.1% inflation forecast for FY24.
Notably, 65 percent of those surveyed expect the recent increase in private investment to continue this year. According to CII, the factors driving private investment are B. A company's balance sheet has been deleveraged and the company's investment capacity has improved once demand becomes clear.
The survey results also show that 62% of his respondents expect the global economic slowdown and geopolitical turmoil to be their top business concerns this year. “It is important that the RBI stick to its moratorium on interest rates to maintain growth momentum. That's also highlighted in the poll results," CII explained.
Also Read:- Goldman Sachs Predicts that India Will Hop on United States by 2075
His CEO of CII, Chandrajit Banerjee, said: “The positive momentum in the CII business sentiment index for the first quarter of the year is encouraging and confirms that most industry players have experience on the ground.” Improving demand in many sectors capacity utilization will improve, providing further stimulus to private investment this year.”
The Reserve Bank of India interest rate moratorium is expected to lower India's cost of capital, spur new investment and further stimulate private investment, according to the study.
There are already signs of improved capacity utilization among the companies surveyed, with more than half (52%) expecting capacity utilization to be in the range of 75% to 100% in the April-June quarter, up from 45% in the previous survey. rose from Quarterly, it said.
Also Read:- Indian Investment and Stock Market
In terms of employment, 47% of respondents expect employment to increase in the first quarter of 2024, compared to 43% last quarter. As business confidence improves, the outlook for June 2024 also becomes more optimistic, with a majority of respondents expecting increased sales (55%) and new orders (57%).
As a result, the revenue outlook for the quarter improved, with more than a third (38%) of respondents expecting revenue growth, but the majority reported high input costs. The survey found that 71% of respondents expect the average price of Brent crude to remain in the range of $70 to $80 per barrel in the first half of the year.
The Indian economy is seen as a beacon of growth in a difficult global situation, supported by slowing inflation and government investment. A well-capitalized financial system and healthy corporate balance sheets should support growth, although the lagged impact of RBI rate hikes will slow growth," Banerjee said.
Also Read:- Indian economic growth and Development
His 123rd Business Outlook Survey will be conducted in May and June 2023 and will be attended by more than 180 of his companies of all sizes and from all industries.
According to the CII current report, the Indian Economy has shown a good growth and also RBI has mentioned that.