Business activity surges in July-September quarter: CII

Two-thirds of respondents reported that sales and new orders accelerated during the second quarter of the ongoing financial year as compared to the previous quarter

October 9, 2023

Over half of the respondents anticipated that capacity utilization would average between 75% and 100%

Enhancing the ease of doing business and the government's commitment to capital expenditure would likely attract private investments

58% of respondents expressed confidence that the central bank would maintain the policy rate for the second half of the year

In September, the government collected INR 1.63 trillion in GST revenue, representing a 10% increase from the previous year

Business activity surged in the July-September quarter of 2023, marked by a notable increase in business confidence, according to a survey by the Confederation of Indian Industry (CII).

The survey revealed that two-thirds of respondents reported that sales and new orders accelerated during the second quarter of the ongoing financial year compared to the previous quarter. Additionally, over half of the respondents anticipated that capacity utilization would average between 75% and 100%, which is a five-percentage-point improvement from the previous quarter.

Experts stated that this is an encouraging sign as maintaining capacity utilization between 75% and 80% is crucial to stimulate fresh investments in the economy.

More than half of the respondents in the CII survey believed that enhancing the ease of doing business and the government’s commitment to capital expenditure would likely attract private investments, thereby stimulating growth across various sectors through a multiplier effect.

Regarding interest rates, 58% of respondents expressed confidence that the central bank would maintain the policy rate for the second half of the year, with 11% expecting a rate cut. 

Furthermore, a significant portion of respondents, nearly a third, believed that imposing export duties on commodities could be an effective measure to control inflation.

In September, the government collected INR 1.63 trillion in GST revenue, representing a 10% increase from the previous year. Among the 200 companies surveyed by CII, two out of three expected India to achieve a growth rate of 6-7% in FY24, with 52% anticipating a boost in rural demand during the first half of the fiscal year.

Source: Economic Times

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