FICCI upbeat on exports front

16 May '05

5 min read

India Inc. optimistic on exports, investment, employment front; concern over FBT, VAT, input price and demand

Ficci National organisation presents Confidence Survey Presents Mixed Picture

Even as India Inc. exudes optimism at the prospects for investments, exports and employment in the next six months, the overall business confidence index in Q4 of 2004-05 is back to the level seen in the second quarter of the year.

The fourth quarter Business Confidence Survey was conducted by the FICCI Research Division during the months of March - April 2005 and is based on responses from 426 companies across a wide geographical and sectoral spread with turnover ranging between Rs. 1 crore and Rs. 60,000 crore. Respondents represent Heavy Industry (55%), Light Industry (30%) and Services (15%) and include sectors like pharmaceuticals, textiles, telecom, food and beverages, heavy equipment and machinery, financial services, paper, metal and metal products, chemicals and fertilizers, FMCG, IT, BPO, travel and tourism, auto and auto ancillary, construction and real estate, steel, cement and petrochemicals.

The optimism on the export front is gauged by the fact that approximately 58% of the companies expect their exports to rise and a sizeable 32% hope to sustain their current levels of exports, despite hardening of the Rupee. The export index stands at 48. This represents an improvement over the value of 41 obtained in the last round of the survey.

Likewise, the continued upward movement in the investment index indicates a possible surge in investment activities in the ensuing quarters of the current fiscal.

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