India Inc’s business confidence weakest in 17 quarters
17 Sept 2013 3:40 AM IST
India Inc’s business confidence has plunged to its lowest level in 17 quarters - reminiscent of the 2008-09 financial meltdown - as cost and availability of credit constrain growth in a weak demand scenario, according to a Ficci survey.
The industry body said the overall business confidence index has fallen to 49.0 in the survey period, highlighting a significant moderation in the performance of companies vis-a-vis performance over the previous six months.
The participating companies are not too optimistic about the near-term performance either, it added.
‘A discernible increase is seen in the proportion of respondents reporting a ‘moderately to substantially worse’ performance at the economy and industry level going ahead,’ according to Ficci’s Business Confidence survey, which was conducted during July-August, 2013. The slide in the confidence level of corporate India continued for a fourth successive quarter.
According ot the survey, about 72 per cent of the participating companies cited high cost of credit as a major concern and a factor constraining growth, while 38 per cent said that availability of credit was an issue.
The industry body said the overall business confidence index has fallen to 49.0 in the survey period, highlighting a significant moderation in the performance of companies vis-a-vis performance over the previous six months.
The participating companies are not too optimistic about the near-term performance either, it added.
‘A discernible increase is seen in the proportion of respondents reporting a ‘moderately to substantially worse’ performance at the economy and industry level going ahead,’ according to Ficci’s Business Confidence survey, which was conducted during July-August, 2013. The slide in the confidence level of corporate India continued for a fourth successive quarter.
According ot the survey, about 72 per cent of the participating companies cited high cost of credit as a major concern and a factor constraining growth, while 38 per cent said that availability of credit was an issue.
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