NEW DELHI: The protectionist approach of developed economies could have an adverse impact on export performance of India, which is already grappling with low demand as the majority of companies are not getting the benefit of credit flow at lower rates, says a report. However, the impact of demonetisation seems to have ebbed at a much faster pace than earlier anticipated, according to the findings of FICCI’s latest Business Confidence Survey.
The survey was conducted during the months of March-April and saw participation of nearly 185 companies. The outlook pertaining to operational parameters shows that during the period April to September 2017, nearly 65 per cent of the companies expect better sales performance, 42 per cent expect profits to increase and 40 per cent expect to invest more than their current investments levels.
Moreover, 31 per cent expect export demand to be better than what it is now and 27 per cent plan to hire more, making additions to their workforce. However, a majority of the firms are still not getting the benefits of credit flow at lower lending rates despite a cut in interest rates by banks, says the report.
According to the survey, nearly 54 per cent participating companies feel that current economic conditions are ‘moderately to substantially better’ compared to the previous six months. Further, the economy is expected to do even better in the coming six months according to 79 per cent of the participating companies.