Business sentiment in India has shown an improvement according to the latest survey by the National Council of Applied Economic Research (NCAER).
The Business Confidence Index for Q2 of this fiscal year stands at 107.8, marking a significant rise from 99.8 in the previous quarter. This development indicates an improvement in India's business sentiment after four consecutive quarters of decline. The survey, conducted among 502 firms across six cities, found improvement in all four indicators of business confidence.
The share of firms expecting overall economic conditions to improve over the next six months has risen to 50%, up from 43%. Expectations of improved financial positions have increased to 41% from 37%, while the share viewing the investment climate positively has risen to 30% from 26%. Additionally, firms expecting capacity utilisation to remain near or above optimal levels has climbed to 94% from 91%.
The Business Confidence Index for Micro, Small and Medium Enterprises (MSMEs) has risen from 93 to 100, while that for large firms increased from 111.6 to 120.3. The survey suggests a broad-based recovery in sentiment among both MSMEs and large firms.
According to NCAER, business prospects have improved in both domestic and external markets, while cost sentiments have moderated.
Source:
Akashvani News
