Message from IEIA President

A steady recovery of the Indian economy is on the anvil as corporate India restarts business and economic activity with lockdowns being increasingly relaxed in many parts of the country. For the first time since the advent of the pandemic in the country in early 2020, India Inc is now estimating a capacity utilisation of more than 50% in the second half of this financial year.

It is important to allow a complete opening up of the economy for demand to pick up which in turn will propel capacity utilisation. CII has been working closely with states and city corporations to bring down uncertainty over the opening protocol. The uptick in demand is expected to gain momentum in the coming weeks with the festive season round the corner.

CEOs of top 115 companies who met at CII’s National Council (its apex board),

Steady Recovery Expected in Second Half of Fiscal

indicated revival of positive business sentiment and gradual rise in expected corporate performance. The CEOs who deliberated on a virtual platform had joined from across the country earlier this week. CEOs of the top companies who took the poll included representatives across sectors from metals and mining to manufacturing, auto, pharma, health, energy, infrastructure, construction and leading services sector including ITES, health hospitality tourism and e commerce. The apex body also had large representation of the medium and small sector apart from start-ups.

The unlocking of almost all economic activities along with the reform and revival measures announced by the Government and RBI have contributed to the gradual improvement in business sentiments in the second half of the current financial year. While in most cases, the performance – revenue or capacity utilisation – is estimated to be lower than the comparative figures in 2019-20, a large percentage of the CEOs polled have shown confidence in the days ahead indicating that the worst may be behind.

On consumer demand, while 32% of the CEOs are hoping for better prospects and another 27% of them expecting no change when compared to the second of last year. However, only 31% of the CEOs expected their revenue growth to be in the positive territory in the second half of current financial year compared to last year as far as revenue growth is concerned. On exports, 40% of the CEOs expected better prospects on exports and 24% of then expect no change in prospects during second half of current year when compared to same period last year.

Apart from the Agri-sector that has been in the positive territory there