After clicking 8.2 % growth in the first quarter of Financial Year 2018-19, there is another good news for Indian Economy.The snap poll conducted by CEOs of Confederation of Indian Industry (CII) has given thumbs up for Indian Economy under Prime Minister Narendra Modi
71 leading CEOs from CII Member companies operating across various sectors and geographies participated in the poll and gave their opinion on 14 different questions based on Indian Economy, industry specific expectations, employment, investment plans and the industry’s overall outlook on FDI and exports for the second half of the Financial Year.
The results of the poll were astonishing and express a robust and positive outlook on GDP growth, Corporate Revenues, Profits, Investments as well as employment.
On the growth front 68.6 % of them expected GDP growth to be greater than 7.25%. On situation of Employment Generation 56.3 % has reacted positively while 70.5 % talked about their hiring plans for 2018-2019 to increase job creation.
On their expectations for the second half of FY-2018-2019, top CEOs has predicted rise in consumer demand, private investment as well as exports with 56.7% of the CEOs expecting an improvement in consumer demand; almost 70% of them expected in private investment to pick up, while 66.2% of the top CEOs taking this poll demonstrated that their expectation was that exports would improve in the second half of the year.
On flow of foreign investments to India, the CEO’s have reacted positively too. 48.5% of the participants of the poll expected an improvement in FDI in the second part of the year.
In the manufacturing sector, 79.6% of the participants belonging to the Manufacturing Sector polled that they expect 70-90% capacity utilization for their individual companies. It indicates stable growth for manufacturing sector in future.
On the rise of investment, the CEOs have hinted high level investment activity. 44.1% of the participants expected substantial increase in investment, while 47.1% demonstrated a small increase in the same
In terms of revenue growth 25.7% of the participants expected revenue growth to be more than 20%, while 47.1% of them forecasted revenue growth to be between 10-20%. In terms of Profit one third of the participants expected profit growth of more than 15%, while 80 % of them pegged their profits to grow by more than 10 %.
The top CEO’s also put a stop to the fears generating from various quarters regarding India compromising its own interests on being member of Regional Comprehensive Economic Partnership Agreement (RCEPA) with 51% of the CEOs indicating that inking RCEPA would help India become part of the regional/ global value chain.
Regional Comprehensive Economic Partnership Agreement (RCEPA), is potentially the world’s biggest free trade deal which is pegged to form the largest economic free trade bloc in the world. The pact which is in-motion visions to be between the 10 ASEAN countries and 6 of their Free Trade Partners (India, China, Australia, Japan, Korea and New Zealand).
The poll result that is positive in all aspects shows acceptance of Modi Government and its policies. The pace at which economy is growing points that big bang reforms like GST and Demonetisation have been successfully dealt with.This snap poll is a tight slap on face of all those critics who have criticized the Indian economy under Prime Minister Narendra Modi.
Source : Republic World