Home / Knowledge / News / Textiles / India Inc turning optimistic about economy: Assocham
India Inc turning optimistic about economy: Assocham
21
Apr '16
India Inc. is largely optimistic about the performance of the economy in coming six months, leading to higher sales and profitability on the back of uptick in the company order-book and capacity utilization, according to a latest Assocham Bizcon Survey.

The optimism is reflected both at the levels of firms and the industry, for April-September period even though the feel good factor is yet to convert into increased appetite for fresh investment and better employment opportunities, noted the survey conducted by Assocham Economic Research Bureau (AERB).

As many 57.1 per cent of the respondents in the Assocham Bizcon Survey across different industry segments shared a sense of optimism about the economy for the coming months. At the firm level, 61.9 per cent respondents feel confident about the same.

Breaking the first half of the fiscal 2016-17 into two quarters, a big chunk of the respondents (66.7 per cent) feel the immediate April-June 2016 quarter sales value would pick up. Similarly, there would be an improvement in the profitability as well, the survey noted.

“Since the industry has been operating much below its capacity for a long period, there would still be a lag for fresh investment while a pickup in increased employment would still be away,” Assocham President Sunil Kanoria said, sharing a sense of optimism reflected in the latest round of the Bizcon Survey.

The flip side of the survey is that a large part of India Inc. still feels that the present state of economy and its undercurrent has not changed much qualitatively as compared to the previous six months. This is true in the case of profitability at the industry and firm level.

Since there has not been much improvement in the employment situation, the wage costs for the industry have remained stagnant. The majority of the industry (57.1 per cent) feels that in the January to March 2016 quarter, there has been no change in terms of the expenditure incurred on wages. A big chunk of the industry respondents (47.6 per cent) feel that the wage costs will not change in the April to June 2016 quarter.

Likewise, in the face of current subdued demand, in January to March 2016 quarter, 76.2 per cent of industry feels that there is no change in terms of the expenditure incurred on electricity and fuel cost. Again the majority of the industry (57.1 percent) expects that there will be no change in the electricity and fuel cost in April to June 2016 quarter as well.

The Assocham Bizcon Survey took into account nine key parameters which include sales, profits, inventories, investments, employment, cost of raw material, electricity and fuel cost, wages and cost of credit. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 19th Sep 2017

Karl Mayer expands service operations in Asia

Karl Mayer, a world leader in the production of warp knitting and...

Textiles | On 19th Sep 2017

Welspun bags Made in Green label by Oeko-Tex

Welspun, a leading home textiles manufacturer, has been awarded Made...

Courtesy: SGS

Textiles | On 19th Sep 2017

SGS expands testing facilities in Naucalpan, Mexico

SGS has expanded testing facilities in Naucalpan, Mexico, creating a...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

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

September 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
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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