In a recent survey from HIS Markit, it has been revealed that business sentiment in India is at its lowest in the past 3 years.
As a result of economic slowdown, water crisis, and limited sales, Indian economy has been hit by yet another blow with India’s business sentiment falls to the lowest level in 3 years.
- A survey by market research firm IHS Markit has revealed that India’s June business sentiment is lowest since 2016.
- The aggregate of private-sector companies forecasting output growth fell to +15% in June compared to +18% in February.
- India’s slowing economic growth, water shortage, limited sales and regulatory hurdles are the major reasons behind this poor outcome.
- India is expected to face a deficit monsoon, which will further increase the economic tension.
- According to the survey report, potential depreciation in the rupee pushing prices for imported materials higher, a lack of skilled labour, likely tax hikes, financial difficulties and customers increasingly demanding discounts are some more issues of which the companies are concerned.
- Another rising concern for the Indian market is that the capital investment confidence in India is now ahead of only two countries (China and the UK) whose data are available.
- This fiscal year India is expecting economic growth of 7%, after the five-year-low of 6.8% in the last fiscal year.
- Hopes of pro-business government policies and a better financial flow continue to underpin optimism towards output and profitability growth in the year ahead, said Principal Economist Pollyanna De Lima.