India Inc business confidence hits a two-year high in Q3

According to the industry body, the latest CII Business Confidence Index rebounded to its highest reading in almost two years of 67.6 in the October-December quarter from 62.2 in the previous quarter. 

Despite tightening financial conditions and geopolitical tensions globally, around 73% of the survey respondents expected only a moderate impact of the global slowdown on the Indian economy, CII said.

The confidence among respondents stems from the fact that 86% believe that the government’s focus on infrastructure is the biggest positive for the Indian economy, followed by the improvement in tax collections and good consumption recovery, it said.

The survey was conducted during November-December 2022 and saw the participation of more than 120 firms of varying sizes across all industry sectors and regions of the country.

Takeaways

• 73% of survey respondents see only a moderate impact of the global slowdown on India
• 86% believe the Centre’s focus on infrastructure is the biggest positive for the Indian economy
• 47% say they have started feeling the heat of policy rate hikes
• Say high interest rates have impinged on private investment levels, too
• 90% feel their company’s investment cycle will recover in FY24
• 47% of the respondents see a rise in profit margins