Industry sees weak demand in next 3 months
A survey by Ficci founds that the industry sees a poor demand over the next 3 months. Tortured by the econonic slowdown and high interest rates is responsible for industry trouble and there was little chance of improvement in upcoming 6 months. The Survey by Ficci found that not only the cost but even the availability of credit had become a problem area for companies, slow the investments. In this survey almost 53 percent of the companies are covered and it was found in the survey that high cost of credit was creating a problem for India industry.
As per the survey only 24 percent of the companies witnessed a small increase in investment over the next 6 months whereas 67 percent of companies excepted constant employment levels during the same period . Around 56 percent indicated that the demand is decreased by 10 percent.
The total business confidence index value increased little up to 60.8 in the current survey while it is 59.8 in the last surve round.The survey was organised during January and February of this year and lead the expectations of the industry for the period January-June 2014. It catches the response from nearly 173 companies and the turn over range from Rs 1 crore to Rs 3.7 lakh crore. The participating companies belonged to different sectors like textiles, cement, financial services, chemicals, construction, metal and metal products, automobiles, FMCG, electrical equipment and machinery, paper and paper products.
Source: The Hindu
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