In spite of issues on global financial flux and inflationary pressures in India, the Indian business sector is positive that there will be better opportunities happening in the future, particularly in the first half of the present fiscal year that will end in March 2011, according to a survey by the Confederation of Indian Industry (CII).
CII’s survey revealed that there was a 1.5 point boost in the BCI to the 67.6 level over the earlier survey that measured business mood for six months, which ended in March of 2010. On the other hand, the progress in the business sentiment, as seen by an increase in the BCI, was average compared to a 7.4 point improvement in the latter survey, which was compared to the period between April and September 2009.
CII Director General Chandrajit Banerjee said that although there was only a moderate increase, it was crucial to mention that it was on a “high base of the previous survey.” When it was compared with last year – the period from April-September 2009 – the Business Confidence Index (BCI) tallied almost nine points. The total index denoted the assumptions from the financial system in the current status, as well as in the next few months.
The survey, which covered over 450 businesses in India, showed that business outlook for the services area – counting the outsourcing sector – is quite higher than the total business sentiment. It likewise indicated that three in four businesses intended to boost their investments in the future, whereas two-thirds of the respondents were sure of growth in exports in the next months.