INVC NEWS
Mumbai : The business landscape in India is radiating optimism, as evident from the recent surge in the Business Confidence Index presented by the Confederation of Indian Industry (CLL). With a remarkable increase amidst challenging global conditions, the index sheds light on the robustness of the Indian economy.
Tracking the Upward Momentum
In the July-September quarter of FY 2023-24, the CLL’s Business Confidence Index witnessed a commendable rise, reaching 67.1. This is a step up from 66.1 in the preceding quarter and a significant leap from 62.2 during the same period in the previous fiscal year.
High-Frequency Indicators Echoing Positivity
CLL highlights that the uplift in the business confidence index isn’t an isolated trend. It resonates with the positive momentum observed in other high-frequency indicators. Factors such as robust GST collections, burgeoning air and rail passenger traffic, and a promising PMI during the second quarter all point towards a thriving economic environment.
Optimism Surrounding Rural Demand and Growth
The survey revealed insightful projections about the Indian economy’s trajectory. A majority of the respondents, approximately 52%, anticipate a surge in rural demand during the first half of the current fiscal year. Additionally, 66% of those surveyed expect the nation’s economy to flourish, projecting a growth rate of 6-7% in FY 2023-24. These figures align harmoniously with forecasts put forth by the Reserve Bank of India (RBI) and various other international agencies.
Stable Outlook on Interest Rates
When it comes to monetary policy and interest rates, the consensus seems to lean towards stability. A significant 58% of respondents believe the RBI will retain the status quo regarding the repo rate for the latter half of this financial year. This perspective underscores the expectation of a stable economic environment.
A Word from the Top
Chandrajit Banerjee, CLL’s Director General, expressed his views on the index’s uptick. He remarked that the enhancement in the CLL Business Confidence Index for Q2 of 2023-24 is not only encouraging but also mirrors the on-ground experiences and sentiments of the industry.
In Conclusion
The Business Confidence Index’s positive trajectory, as presented by CLL, showcases the resilience and potential of the Indian economy. Amidst global adversities, India’s economic engine continues to chug forward with vigor, promising growth and stability.
