Impressive performance in the past six months has boosted the confidence, and expectations, of corporate India on future growth prospects. A CII business confidence index (CII-BCI) survey reveals that companies this fiscal have planned more investments in the second half of the year.
The majority of the respondents expect the economy to grow at 8.5 to 9 per cent this fiscal, while a large number confident of growth over nine per cent.
The CII-BCI showed an increase of 2.5 points at 71.8 for the period October-March 2006-07 over the previous period of April-September 2006-07.
The survey, constructed as a weighted average of the 'current situation index' (CSI) and the 'expectations index' (EI) was higher among the non-manufacturing firms engaged in provision of services as compared to manufacturing firms.
The CSI compares current business conditions with the previous six months has witnessed a significant increase of 3.4 points for the period April-March 2006-07.
The respondents have also expressed confidence that the sector in which they operate would be better as compared to the previous six months.
The EI reflects the perceptions of Indian industry with regard to performance of their company, sector and the Indian economy for the next six months is up by two points for the period October-March 2006-07.