Business

Industry expects revival in 6 months — FICCI

NEW DELHI MAY 8. Amid uncertainty in business environment stemming from the Gujarat crisis, Indian industry is hopeful of economic revival in the next six months, according to the Federation of Indian Chambers of Commerce and Industry's (FICCI) business confidence survey April 2002 that covered 332 respondents.

"Industry is quite optimistic about recovery prospects over the next six months with 86 per cent rating the prospects to be good to average,'' the survey says.

While only 4 per cent of the respondents expressed a strong level of business confidence, 38 per cent reported strong business confidence, 44 per cent reflected an average and 14 per cent reflected low business confidence.

The FICCI said recovery had already begun as 40 per cent of respondents reported an improved business performance compared to the last six months and as many as 33 per cent predicted `higher to much higher' profits over the next six months.

Of them only 43 per cent expected to retain their present margins and 47 were predicting `higher to much higher' sales.

Only 36 per cent reported plans for fresh investments over the period, the survey said, adding companies are buoyant about future exports with 42 per cent expecting a `much higher or higher level' exports over the period.

The survey also revealed that around 88 per cent of the respondents were expecting interest rates to fall in the medium term while only 12 per cent felt it will rise.

Interestingly, 74 per cent of respondents said the impact of the budget 2002-03 on their business was `neutral to positive,' it said.

PTI

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