Indian economy’s growth sustained by conducive domestic policy, healthy macro indicators: CII survey

economictimes.indiatimes.com:

Amidst the heightened global uncertainty, the Indian economy has proved to be more resilient than many large economies of the world, a report from CII has showed. A conducive domestic policy environment, along with healthy performance of its key macroeconomic indicators have sustained the growth momentum of the economy, the report said. The CII Business Confidence Index (CII- BCI) improved to a reading of 66.1 in Q1 (Apr-Jun FY24) as compared to 64.0 in the previous quarter showing a positive momentum in indicators such as GST collection and air & rail passenger traffic. 63 per cent of over 180 firms surveyed in the Business Outlook Survey (63 per cent) expect India's GDP growth to be 6-7 per cent for FY24, similar to RBI’s growth forecast of 6.5 per cent for this fiscal year. 86 per cent of the respondents expect inflation to fall below 6 per cent in FY24 in line with RBI’s projection of 5.1 per cent of inflation in FY24.

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Notably, 65 per cent of respondents believe that the recent increases in private investment will continue during the current fiscal year. There are several factors which are driving private capex such as deleveraged corporate balance sheets, which has in turn increased the capacity of the corporates to invest once there is clear visibility on demand, CII stated. The survey results also show that 62 per cent of respondents expect muted global growth and geopolitical turbulence as the key business concerns in the current fiscal. «It is important for the RBI to stick with a pause on the interest rate to preserve the growth impulses. This was emphasised in the survey results, as 53 per cent of the respondents expected the RBI to maintain status