CEOs Expect 9-10pc Growth For Current Fiscal Year (CII Survey)
The Confederation of Indian Industry (CII) in a statement released on Sunday said the Indian economy is expected to rebound strongly under the current fiscal year, posting a growth rate of 9-10%.
The trade association recently conducted a survey of around 100 CEOs among the members of the CII National Council. The survey found that, despite a large number of CEOs interviewed, they appeared worried about the impact of the new Omnicron covid variant on services and manufacturing, but they were confident India’s economy is ready for a strong rebound in the current fiscal period. .
The survey found that around 10% of CEOs surveyed believe economic growth could even exceed 10% in 2021-2022.
CII President TV Narendran said: âThe government’s emphasis on public works, timely interventions to increase liquidity and several reforms carried out in recent months, including easing regulations, production-related incentive program, RoDTEP and several other bold reforms have boosted optimism for economic growth, âsaid.
Omicron’s impact on business,
The survey says 55% of CEOs surveyed expect the service industry to be negatively affected due to the spread of the new Omicron variant, while 34% said it could negatively impact the business. Manufacturing.
56% of CEOs surveyed said India’s economy would grow in the range of 9-10% in 2021-2022, while a further 10% expected the growth rate to exceed 10% this fiscal year , according to the CII press release.
CEOs surveyed were also bullish on sentiment regarding business, with 35% indicating that the increase in revenue this year was in the range of 10-20% compared to the pre-covid year (2019-20), while that 33% expected a larger jump of more than 20%.
He further said that around 35% of CEOs surveyed expected a gross profit increase of more than 20% from the pre-Covid year, while an additional 17% indicated a 10% increase in 20%.
This optimism among CEOs is despite the fact that more than a third of them (70%) observe that supply chain bottlenecks were causing problems in the movement of goods in their industry. , according to the press release.
The statement further states, given the resumption of business activity this year, 59% of CEOs noted that capacity utilization in their companies is currently in the range of 70% to 100%, while 18 % of them felt it could be over 100%. Almost a similar proportion (62%) of CEOs surveyed expected their company’s capital expenditure for the year 2022-2023 to be ??500 crores.
Additionally, 71% of those surveyed said they had not raised resources in Indian or global markets in the past year, while 18% of CEOs said they had raised debt and 11% had raised debt. declared having raised capital in Indian or global markets. markets during the past year.
35% of CEOs surveyed indicated up to a 20% increase in exports compared to the pre-covid year 2019-2020, while 24% believed it would remain the same as in FY20.
The survey also noted that around 10% of CEOs indicated more than 50% growth in exports in the current year compared to the pre-Covid 2019-2020 year.
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