India Inc’s business confidence plunges with RBI’s tightening measures
29 Aug 2011
India's business confidence has dropped to a two-year low, reveals a new survey released today, with companies rattled by the slowdown in domestic and global economy.
The survey which polled around 300 companies showed business confidence index had fallen to 51.6 out of 100 in the April-to-June quarter from 63.7 during the previous three-month period.
According to the Federation of Indian Chambers of Commerce and Industry, both global and domestic factors seem to have dented the level of confidence of India Inc.
The survey, which covered a wide range of companies across diverse sectors such as textiles, steel and energy , autos as also consumer goods, reflected "growing apprehensions about the world economy entering into another recession", according to the business body.
"At the domestic level, rising interest costs and weak domestic demand -- both in part attributable to the contractionary monetary policy pursued by the Reserve Bank of India -- are taking their toll," it said.
The survey results comes a day ahead of official data that is expected to show declining trends in the April-June quarter to 7.6 per cent from a year earlier, hit by the aggressive monetary tightening policies of the central bank.
