Industrial growth revival to continue in H1

India’s industrial growth is expected to continue upwards in the second half of the current fiscal as well with the overall economy to ...

India’s industrial growth is expected to continue upwards in the second half of the current fiscal as well with the overall economy to grow at an expected rate between 4.5 – 5%t in this fiscal.

According to revelations of Confederation of Indian Industry’s (CII) 58th Business Outlook Survey, the business confidence that had been strengthened during the beginning of the year has not weakened despite the weak monsoons and the prevailing uncertainty in the global economy.

The impact that the weak monsoons would have on the overall growth of the agricultural sector is expected to be offset by stronger growth in industry and exports.

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In the bi-annual survey, 51% of the respondents hoped that general business prospects for their company would improve over the next few months. While 41% of the respondents felt that same trends would continue. Only 8% felt that they would experience a worsening in t he general business prospects for their company.

Sectoral analysis revealed that the capital goods and intermediate goods sectors would exhibit higher growth in the next six months. The survey also reflected that more than half respondents are looking at fresh capital investments in the existing business unit.

The fresh investments is largely fed by the expectations of a pick up in both domestic and international demand. However, most of the investments are expected to be capital intensive as 57% respondents have revealed that the level of employment is expected to remain constant over the next six months.

The respondents have expressed that poor domestic economic conditions and policies would be a significant deterrent to achieving higher levels of output.