India Inc. gives Modi government 8/10 in ASSOCHAM survey

Broad economic parameters like GDP, services, exports, and trade deficit are doing well, say corporate leaders The Dollar Business Bureau | @TheDollarBiz

Soucre: Prime Minister office

In a survey conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) last week, top corporate leaders have given a ranking of 8/10 to the Narendra Modi led NDA government about a week ahead of its completion of 100 days in office. About 357 top industry leaders participated in the survey. Most of them said that the new government has a business-friendly approach and there is a strong focus on accountability. While 78% of the participants said that there is a positive change in the perception among the global and domestic investors about India, 83% of CEOs, CMDs and CFOs said that broad economic parameters like GDP prospects, including the industrial output, services, exports, and trade deficit are looking better. Last week, India’s Finance Minister Arun Jaitley said that the GDP, at factor cost at constant (2004-2005) prices, for Q1 of 2014-15 is estimated at Rs.14.38 lakh crore, which is up about 5.7% over the Rs.13.61 lakh crore in the corresponding quarter of previous year. According to the Finance Ministry, India’s GDP in FY 2014-15 is forecast to grow by around 5.7-5.9% and return to the high growth rate of 7% in 2-3 years. However, ASSOCHAM expects the GDP to do better helped by improvements in key fundamentals of the economy. Rana Kapoor, President, ASSOCHAM, said, “It (GDP) will only pick up further from here and Indian economy is well poised to reach 6% or may even cross the 6% mark for the full FY 2014-15.” The ASSOCHAM chief added that there is scope to improve manufacturing further along with mining and certain segments of services like hotels, transport, and a sharp reduction in crude oil prices will also help the economy. However, 67% of the participants in the ASSOCHAM survey expressed concerns over problems such as power shortages, port functioning, coal linkages, and the Land Acquisition policy. Meanwhile the export sector is also expected to do well this year. According to the Federation of Indian Exporters Organisation (FIEO), India’s exports are poised to touch $350 billion in FY2014-15 despite lower than expected results so far. Rafeeque Ahmed, President FIEO, said recently that the export growth of 7.36% in July 2014 is below his expectation but India’s exports can reach $350 billion in FY2014-15 (up 11.5% from $314 billion in the previous year) due to improvement in the manufacturing sector.

This article was published on September 1, 2014.

Related Topics:

The Dollar Business Bureau - Sep 01, 2014 07:27 IST

India Inc. gives Modi government 8/10 in ASSOCHAM survey

We like you just the way you are.