Assocham warns of impact on bottom lines in the absence of 'good signals'

Pointing out that business confidence was in steep decline, industry body Assocham today said India Inc, which was braving negative perceptions, would see its bottomlines impacted neagatively unless "good signals" emerged on the policy front from the UPA government led by  prime minister, Manmohan Singh.

Ahead of the RBI's 31 July monetary policy review, the industry body also made a case for reduction in interest rates to allow the economy to pick up.

According to the body, while corporates braved a negative perception about the economy and managed to hold on to growth both in net profits and total income in June quarter of 2012-13, the future appeared uncertain.

Assocham president Rajkumar Dhoot said, while it was to the credit of corporate India to hold on to their bottomline, though at a lower pace, it would be risky to assume that they would manage to do well in the coming months.

He added, according to a recent analysis, the overall business confidence had slipped in the last six months.

He added things might improve somewhat if good signals emerged from the government and the US.