BackCEOs expect 9-10% economic growth in current fiscal, says CII poll
A large number of CEOs polled appeared to be worried about the impact of the new Omnicron variant on services and the manufacturing sector, the CII survey says
PremiumThe Confederation of Indian Industry (CII) in a release on Sunday said the Indian economy is likely to set for a strong rebound in the current fiscal posting a growth rate of 9-10%.
The trade association recently conducted a poll of around 100 CEOs among the members of the CII National Council. The survey found that despite a large number of CEOs polled appeared to be worried about the impact of the new covid variant Omnicron on services and the manufacturing sector, but they were confident that the Indian economy is all set for a strong rebound in the current fiscal.
The survey found that about 10% of the CEOs polled believe that the economic growth could even exceed 10% during 2021-22.
CII president TV Narendran said, “The government's strong emphasis on public works, timely interventions to boost liquidity and several reforms carried out in the recent months including easing regulations, Production Linked Incentives scheme, RoDTEP and several other bold reforms have buoyed the optimism on higher economic growth," said.
Omicron's Impact on Business,
The survey said, 55% of CEOs polled expect that the services sector would get adversely impacted due to the spread of the new Omicron variant, while another 34% indicated that it could adversely impact manufacturing activities.
56% of CEOs polled indicated that the Indian economy would grow in the range of 9% to 10% during 2021-22, while another 10% expected the growth rate would excide 10% this fiscal year, the CII release said.
The CEOs polled were also upbeat on sentiments regarding business, with 35% indicating that the increase in revenue this year in the range of 10-20% when compared to pre-covid year (2019-20), while another 33% expected a bigger jump of over 20%.
It further said that about 35% of the CEOs polled expected more than 20% increase in gross profits when compared to the pre Covid year, while another 17% indicated an increase of 10% to 20%.
This optimism among the CEOs is despite more than a third of them (70 percent) observing that supply chain bottlenecks were causing problems in the movement of goods in their industry sector, the release said.
The release further said, given the pick-up in business activity this year, 59% of the CEOs noted that capacity utilization in their companies was currently in the range of 70% to 100%, while 18% of them felt that it could be more than 100%. Nearly a similar proportion (62%) of the CEOs polled projected capital expenditure in their companies for the year 2022-23 to be up to ₹500 crores.
Additionally, 71% of the respondents indicated that they did not raise resources in the Indian or global markets in the past year, while 18% of CEOs said that they had raised debt and another 11% said that they raised equity in the Indian or global markets in the past year.
35% of the CEOs surveyed indicated up to 20% increase in exports when compared to pre-covid year 2019-20, while 24% felt that it would remain the same as in FY20.
The survey also noted that about 10% of the CEOs indicated over 50% growth in exports in the current year when compared to the pre-Covid year 2019-20.
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