BackBusiness Confidence Index rose by 7.8% in Nov-Jan
RBI gave exemption to help boost credit flow to productive sectors that lead to growth impulsesMove comes amid a fall in credit growth to 7.14% in fortnight ended 17 Jan against 7.51% in earlier period
PremiumAfter hitting a six-year low in August-October, India Inc.’s business confidence picked up modestly in the November-January period, according to the latest survey released by Delhi-based think tank National Council of Applied Economic Research (NCAER) on Wednesday.
According to the quarterly survey, the Business Confidence Index (BCI) rose by 7.8% from the preceding quarter to 111.2.
“Despite showing improvement in the third quarter of the current fiscal, business sentiments continued to exhibit lingering weakness and specifically fragility," the NCAER said in a statement. Indian businesses have been battling demand slowdown and liquidity crunch, which resulted in economic growth rate cooling to a more than six-year low of 4.5% in the September quarter. The statistics department is scheduled to release its December quarter gross domestic product (GDP) data along with full-year growth estimate for 2019-20 on Friday. The BCI survey asks four questions with equal weight, such as future overall economic conditions and financial position of firms, present investment climate and present capacity utilization. While the survey reported improved response on present investment climate and present capacity utilisation, companies remained concerned about future overall economic conditions and future financial position of firms.
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