FICCI Publishes Business Confidence Survey

FICCI Publishes Business Confidence Survey

FICCI has published its quarterly 'Business Confidence' Survey. Accordingly, business confidence of Indian companies hit a three-quarter low in May. Confidence was at a decade high in a previous survey.


The main findings of the survey

The decline in the FICCI Business Confidence Index (BCI) is due to a decline in the level of optimism of participating companies in the current context. After touching the level of 2 in the previous survey, the BCI is at the level of 51.5 in the recent survey. However, when the nationwide lockdown took effect, the index is still higher compared to 2020 (42.9). According to the survey, while the economy saw an improvement after the epidemic-induced lockdown in 2020, the second wave once again disrupted. This has a severe impact on the health front and reduces the initial profits on the economic front.

FICCI instruction

The FICCI has suggested that measures to support demand are important for the economy to recover from the Covid shock. In addition, with increased speed of vaccination, the situation may soon return to normal.

Worries

According to the survey, rising costs of raw materials are the biggest problem in the fourth consecutive survey. About 65% of participants said the high cost of raw materials is a deterrent.

Employment and exports

The survey also found a decline in employment and exports. Only 19% of participants were optimistic about the good prospect of hiring while 27 participants suggested higher outbound shipments. 80% of companies had difficulty doing their business.

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