Seven months after the Narendra Modi-led government came to power, majority of business leaders have said not much has changed at the ground level, however many are still optimistic of things improving within the first half of 2015, according to a survey.
“Not much has changed on the ground at the industry level in the last
six months, but the situation is going to improve within first half of
2015, as reflected in the optimism about sales volume and hiring of
workforce by corporates,” Business Confidence Survey by industry body
Assocham said.
As many as 54.2 per cent of the respondents in the confidence measuring
survey said not much has really changed at the operating level in the
last six months. On the other hand, the survey, which was conducted in
December 2014, indicates that the general consensus (62.5 per cent) at
the industry level seems to be that their performance in the coming six
months would improve.
The survey also found that 45.8 per cent of business leaders believe
that the January-March 2015 quarter won't see any change in their
domestic investment plans. Industry believes that exports market will
remain sluggish as majority of respondents see no change in the exports
volume.
Meanwhile, 41.7 per cent expect job hiring prospects to improve in the next quarter and in subsequent months.
“Typically investment follows improvement in sales and profitability.
Sales and profitability are falling in place and there would be a
visible change in the next few months after which investment should
follow since there is always a lag,” Assocham Secretary General D S
Rawat said.
As many 58.3 per cent of the respondents expect their sales volume to
increase during the ongoing quarter, and 45.8 per cent forecast similar
outlook for profits.
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