India Inc optimistic over economic growth during Q3 FY18: CII

New Delhi, Dec 11: Reflecting an improvement in perception regarding the overall economic conditions and amidst indications of a normalisation in business situation post the recent disruptions, companies are optimistic that economic growth would gain traction during the third quarter (Q3) of FY18. 

This is indicated in the CII Business Confidence index (BCI) which has climbed up to the level of 59.7 during Oct-Dec 2017 as against 58.3 in the previous quarter. 
Commenting on the rebound in Business Confidence, Chandrajit Banerjee, Director General, CII stated that “the Survey underscores the perception that the economy is on a sustainable recovery path, with the many government interventions having an impact on the ground. The climb in business confidence underpins the hope that the upward trend one is seeing on macro figures would be sustained.” 
These findings are a part of CII’s 101st edition of quarterly Business Outlook Survey, which was based on responses from large, medium and small companies, covering all regions of the country. 
The significant improvement in the index this quarter has been led by a sharp improvement in the Expectation Index, as compared to the Current Situation Index, as firms appeared particularly upbeat about the expectations in their sectors.
Most of the respondents (79 percent) expect GST payments to become hassle-free by Q1 2018-19. This is a testimony to the faith reposed by business on the reforms-oriented approach of the government. 
On inflation metric, more than half of respondents anticipate the price rise to be within the range of 4.0-5.0 per cent in 2017-18, while close to 24 percent of respondents expect it to be in the 3.0-4.0 per cent range. Around 23 percent feel that inflation will stabilize within the 5.0-6.0 per cent range in the current fiscal. UNI