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NEW DELHI :  

Indian manufacturers are increasingly struggling to source raw material following covid-related lockdowns in China and Russia’s invasion of Ukraine that has disrupted supply chains across the globe.

According to Confederation of Indian Industry (CII) poll of 136 chief executives, nearly 50% of CEOs indicated mild to moderate disruptions in supply of inputs during the first half of 2022-23.

“About 46% of CEOs indicated that rising input prices will affect their profit by 5-10% during H1 FY23, followed by another 28% who expect a bigger hit to profit by 10-20%," it said. Nearly 57% of the respondents said firms absorbed the input price rise, while 44% felt their revenue growth will be in the range of 10% to 20% during the period under consideration. As per the survey report, about 50% of the CEOs expect inflation to be in the range of 7-8% during H1 FY23. Besides most CEOs expected monetary tightening to continue as inflation remains well beyond the Reserve Bank of India’s comfort zone.

On prospects of growth, the poll showed that a majority of CEOs expected gross domestic product (GDP) growth to be in the range of 7-8%, but 34% said expansion in the economy will be below 7% during the ongoing financial year. Besides, about 50% of CEOs said rural demand will be better in the first half of FY23, compared to the corresponding period of last year, the survey showed.

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