Home >News >India >Industry’s biz confidence hit a record low in Q1, says survey
The International Monetary Fund has estimated Indian economy to contract by 4.5% in FY21 Photo: Bloomberg
The International Monetary Fund has estimated Indian economy to contract by 4.5% in FY21 Photo: Bloomberg

Industry’s biz confidence hit a record low in Q1, says survey

The Business Confidence Index (BCI) dipped to 46.4 in the June quarter, falling 40.1% from the quarter ended March of FY20, according to the quarterly survey

India Inc.’s business confidence declined to a historic low in the June quarter, according to the results of a survey released by Delhi-based think tank National Council of Applied Economic Research (NCAER) on Friday.

The Business Confidence Index (BCI) dipped to 46.4 in the June quarter, falling 40.1% from the quarter ended March of FY20, according to the quarterly survey.

“The latest, 113th Round of the Business Expectations Survey (BES), was carried out in June 2020, when the country had started slowly opening up after more than two months of lockdown imposed in the wake of the coronavirus outbreak, following which the spread of the disease accelerated. This is the lowest that the BCI has ever fallen in the 113 rounds of the NCAER BES," NCAER said.

Indian businesses have been battling demand slowdown and liquidity crunch. This was compounded by a lockdown to contain the spread of covid, which halted business activities, giving a supply and demand shock to the economy. The fall in BCI in the June quarter was driven by deterioration in sentiment across all four components, NCAER said. The steepest decline was for the question whether the overall economic conditions will improve in the next six months, where the share of positive responses fell to 17.1% in the June quarter from 26.1% in the March quarter.

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