Election outcome raises industry expectations
Updated: May 26, 2014 12:34:01pm
New Delhi, May 26 (KNN) A survey conducted among CEOs of companies has revealed that a whopping 93 per cent foresee a substantial improvement in the near term economic situation, while the remaining 7 per cent expect a marginal improvement.
The survey was conducted by FICCI (Federation of Indian Chambers of Commerce and Industry) to gauge the sentiment post-election. The results are based on responses from about 76 CEOs who are members of FICCI’s National Executive Committee.
From the survey it was clear that the election outcome has raised expectations among the industry.
“FICCI hopes that the new leadership will restore much needed investor confidence, attract higher investments and generate employment, especially in the manufacturing sector. Industry must be seen as a key factor in the nation's advancement by enabling efficient provision of goods and services and creation of jobs,” a FICCI release said.
The decision making machinery at the government level having witnessed a significant slowdown in recent past which has had an impact on growth as well; with new leadership on board, a majority 93 per cent of the participating CEOs said that they certainly see a reversal as far as this trend is concerned. The remaining 7 per cent were a little sceptical about a change in the decision making machinery, the survey findings said.
With regard to business and investment prospects over next 12 months, a majority 82 per cent cited a substantial improvement in their business and investment prospects over the next twelve months.
However, participating CEOs indicated that there are a plethora of challenges facing the incoming government. The growth has decelerated quite notably and the situation of the manufacturing sector continues to remain worrisome.
Further, a significant majority of the participants felt that issues related to factors of production- land, labour, capital and power are amongst the most critical challenges that the new government will have to deal with. Inflation and need for tax reforms were also cited as other immediate concern areas.
Industry representatives were of the opinion that market for various factors of production has not seen much liberalization, be it land, labour or the capital market. They believe
that that the country has a long way to go to ensure optimal utilization of these resources.
Other challenges highlighted in the report are transparency and stability in policies; corruption; handling of non-performing assets in the banking sector; infrastructure creation and review of free trade agreements.
It was also reflected by the CEOs that the forthcoming Union Budget should seriously look at subsidy rationalisation and bringing stability in the fiscal regime. (KNN/ES)
The survey was conducted by FICCI (Federation of Indian Chambers of Commerce and Industry) to gauge the sentiment post-election. The results are based on responses from about 76 CEOs who are members of FICCI’s National Executive Committee.
From the survey it was clear that the election outcome has raised expectations among the industry.
“FICCI hopes that the new leadership will restore much needed investor confidence, attract higher investments and generate employment, especially in the manufacturing sector. Industry must be seen as a key factor in the nation's advancement by enabling efficient provision of goods and services and creation of jobs,” a FICCI release said.
The decision making machinery at the government level having witnessed a significant slowdown in recent past which has had an impact on growth as well; with new leadership on board, a majority 93 per cent of the participating CEOs said that they certainly see a reversal as far as this trend is concerned. The remaining 7 per cent were a little sceptical about a change in the decision making machinery, the survey findings said.
With regard to business and investment prospects over next 12 months, a majority 82 per cent cited a substantial improvement in their business and investment prospects over the next twelve months.
However, participating CEOs indicated that there are a plethora of challenges facing the incoming government. The growth has decelerated quite notably and the situation of the manufacturing sector continues to remain worrisome.
Further, a significant majority of the participants felt that issues related to factors of production- land, labour, capital and power are amongst the most critical challenges that the new government will have to deal with. Inflation and need for tax reforms were also cited as other immediate concern areas.
Industry representatives were of the opinion that market for various factors of production has not seen much liberalization, be it land, labour or the capital market. They believe
that that the country has a long way to go to ensure optimal utilization of these resources.
Other challenges highlighted in the report are transparency and stability in policies; corruption; handling of non-performing assets in the banking sector; infrastructure creation and review of free trade agreements.
It was also reflected by the CEOs that the forthcoming Union Budget should seriously look at subsidy rationalisation and bringing stability in the fiscal regime. (KNN/ES)
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