Industry Trends and Public Opinions: Insights Gleaned from CII's 128th Business Outlook Assessment
The Confederation of Indian Industry (CII) recently conducted its 128th Business Outlook Survey in September 2024, gathering responses from 200 firms across various sectors. The specific companies and their industries participating in the survey remain undisclosed.
The survey results paint a picture of optimism and resilience within the Indian economy, as it navigates global uncertainties. A significant 49% of firms project an increase in employment due to improvements within their companies. Furthermore, 45% of the respondents believe that their bottom-line will improve in the quarter.
The CII Business Confidence Index (CII-BCI) rose to 68.2 in the second quarter of the current fiscal year, indicating a good overall economic health and optimism among businesses. The index is known to be an indicator of the nation's economic outlook.
The survey also highlighted several growth drivers for the current fiscal year. Improved consumption patterns, favourable monsoon conditions, robust kharif crop sowing, increased private investments, moderate inflation, and strong corporate and banking balance sheets are some of the key factors contributing to this optimistic outlook.
In terms of investments, 41% of the respondents feel that their domestic investments would see an increase in the second quarter of the current fiscal year. On the other hand, 40% of the respondents also feel that their investment plan will remain unchanged in the international arena. However, 17% are concerned about decreasing external demand.
The survey also identified some areas of concern. Fluctuating consumption patterns, food price volatility, and financial market instability are among the domestic issues that businesses are keeping a close eye on. On the global front, 18% of respondents highlight rising global commodity prices as a top business concern, while 24% cite protracted geopolitical tensions.
Notably, Gross Fixed Capital Formation (GFCF) has seen an increase in Q1 of FY24-25, which is a positive sign for the economy's growth. The survey suggests an increase in private investments as one of the drivers for the current fiscal year.
The survey included participation from companies of all sizes, reflecting a broad representation of the Indian business landscape. These findings underscore the resilience of the Indian economy amid global uncertainties, offering a promising outlook for the rest of the fiscal year.
