The Federation of Indian Chambers of Commerce and Industry (FICCI) has said that India Inc’s business confidence is at the highest level of the past decade. The industry yesterday said that its Overall Business Confidence Index has witnessed a decadal high of 74.2 on account of improvement in present business conditions.
The Index had stood at 70.9 in 2020 and 59 in 2019. The FICCI’s survey revealed that the recovery of demand conditions, improved capacity utilization and a promising outlook on key operational parameters have boosted the business confidence. The demand situation has improved on the back of the release of the pent-up demand build-up during the lockdown.
According to the survey, factors like improved economic conditions and greater pricing power are likely to prove profitable for corporates. The survey stated that the percentage of participants citing higher profits over the next six months has increased to 36 per cent from 33 per cent in the last survey.
While 35 per cent of respondents were optimistic about better hiring prospects over the next two quarters, as many as 41 per cent of companies expect higher export orders in the coming months on the back of global economic recovery.
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