Indian business confidence hits 2-year low
The emperor’s new clothes? Indian consumers are still buying, but a new survey says business confidence is at an all-time low.
Things here may seem rosy if you're sitting in the US or Europe, but India's feted entrepreneurs are expecting a rough patch ahead.
According to a new survey by the Federation of Indian Chambers of Commerce and Industry (FICCI), India Inc's confidence has plunged to two-year low as companies grapple with high interest rates, poor governance, land acquisition issues and eroding pricing power due to inflation, the Economic Times reports.
Saying that companies are worried about their performance over the next six months, the survey said the government should speed the implementation of new policies and fast-track project clearances.
Other items on the wish list are a drop in credit costs, a solution to the snafus surrounding land acquisition for industrial projects, and an increase in infrastructure spending, the paper said.
However, a third of the companies surveyed said they expect to see their profits falling over the next two quarters.
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