Home / Knowledge / News / Textiles / CII Business Confidence index rises markedly in Apr-Jun 2016
CII Business Confidence index rises markedly in Apr-Jun 2016
26
Jul '16
The CII- Business Confidence Index (BCI) for April -June 2016 (BCI) increased to the level of 57.2, up from the level of 54.1 recorded in the previous quarter reflecting a rise in business sentiment and lending credence to the perception that industry is on a strong footing.

Indian industry remained upbeat about the business environment in the first quarter of FY2016-17, leading to a rise in the CII BCI, which has been steadily climbing since the last three quarters, according to a release by the Confederation of Indian Industry (CII).

Commenting on the decisive improvement in the BCI, Chandrajit Banerjee, Director General, CII said 'a rise in business expectations sends an early signal that the industry is anticipating an upturn in demand propelled by factors such as implementation of the Seventh Pay Commission, progress of a favourable monsoon and pro-active reform agenda of the government'.

The findings are a part of CII's 95th edition of quarterly Business Outlook Survey, which was based on more than 200 responses from large, medium, small and micro firms, covering all regions of the country.

The improvement in the index this quarter has been led by a sharp improvement in the Expectation Index, as compared to the Current Situation Index, as firms appeared particularly upbeat about activity in their sectors.

The increase in the business sentiment this quarter has been backed by strong expectation of economic growth for the current fiscal year, with more than 60% of the firms expecting real GDP growth to range between 7-8% in FY 2017.

Also, business conditions are expected to improve as 61% of the firms expect an increase in sales in April-June 2016, as compared to only 42% who experienced the same in January-March 2016, while nearly 65% of the firms anticipated an increase in new orders in April -June 2016, up from 40% who witnessed the same in the preceding quarter.

Much of the recovery in business conditions is expected to be domestically driven as a majority of the firms (51.2%) expect to maintain status quo on their export orders in the first quarter, the CII report said.

Profit expectations have also improved in the current quarter (Apr-Jun 2016) with close to half of the firms (48.7%) anticipating an increase in their after-tax profits in the period. This, despite the fact that a large share of respondents (37%) had experienced a decline in after- tax profits in the previous quarter (Jan-Mar 2016).

Nearly half of the respondent firms, (49.7%), had placed their investment plans on hold in Apr-Jun 2016 quarter, notwithstanding the expectation of improvement in sales and new orders in the said period. Existing unutilized capacity and unforthcoming demand prompted them to maintain status quo on their domestic investment while uncertainty in the global economic environment forced 60.5% of them to keep their international investment plans unchanged.


Must ReadView All

Textiles | On 20th Aug 2017

PetroVietnam, Vinatex discuss reviving PVTEX plant

Discussions are under way between PetroVietnam and textile and...

Courtesy: Mexx

Fashion | On 20th Aug 2017

RNF acquires Mexx fashion brand

RNF, the Dutch sports and fashion holding, has purchased the global...

Textiles | On 20th Aug 2017

Intertextile Shanghai Home Textiles opens on August 23

Intertextile Shanghai Home Textiles, Asia’s leading platform to meet...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

August 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search