A wait-and-watch sentiment prevails in the textiles and apparel industry. Though businesses are expecting good revenues in the coming months given the positive present and expected status of the order books, there is hesitation among businesses when it comes to investment, according to the just-published Business Confidence Index by Wazir Advisors authored by Varun Vaid and Manjulika Poddar.

The Business Confidence Index from Wazir Advisors is an indicator of what businesses think is going to happen in the near future. In India, so far there has been no such indicator that could provide forward-looking data set or 'lead indicators' about the anticipated performance of the textiles and apparel industry in the country. With an aim to fill this gap, Wazir Advisors has started the first of its kind biannual survey of business confidence to gauge industry sentiments in India.

The first survey was conducted in December 2017 bringing together inputs of businesses across the entire value chain. There were a total of 108 respondents with profile mentioned below.

Chart: Profile of respondents

The outcome of the survey which reflects upon current business sentiments in the industry in India and their expectations from near future is presented below.

Economy - Current Scenario and Future Expectations

Q. How would you rate the current Indian economic conditions vis-a-vis the last six months?

Q. What are your expectations from the overall Indian economy over the next six months?

While 40 per cent of the respondents say that the current overall economy is worse relative to the last six months, 80 per cent are expecting a better scenario in the next six months. There is an overall positive sentiment as the economy has started to recover from twin shocks of demonetization and goods and services tax (GST) implementation. The sentiment is also echoed in the latest United Nations publication World Economic Situation and Prospects 2018, which has predicted the Indian economy to grow at 7.2 per cent this year.