Indian economy’s growth sustained by conducive domestic policy, healthy macro indicators: CII survey

NEW DELHI: Amidst the heightened global uncertainty, the Indian economy has provedtobemoreresilientthanmany largeeconomiesoftheworld,areport fromCIIhasshowed.Acond ucive domestic policy environment, along with healthy performance of its key macroeconomic indicators have sustained the growth momentum of theeconomy,thereportsaid.

The CII Business Confidence Index (CII- BCI) improved to a reading of 66.1 in Q1 (Apr-Jun FY24) as compared to 64.0 in the previous quarter showing a positive momentuminindicatorssuchasGST collection and air & rail passenger traffic.

63 per cent of over 180 firms surveyed in the Business Outlook

Survey (63 per cent) expect India's GDP growth to be 6-7 per cent for FY24, similar to RBI’s growth forecast of 6.5 per cent for this fiscal year.

86 per cent of the respondents expectinflationtofallbelow6percent inFY24inlinewithRBI’sprojectionof 5.1percentofinflationinFY24.

Notably,65percentofrespondents believe that the recent increases in private investment will continue duringthecurrentfiscalyear.

There are several factors which are driving private capex such as deleveraged corporate balance sheets, which has in turn increased the capacity of the corporates to invest once there is clear visibility on demand, CII stated.

The survey results also show that 62 per cent of respondents expect muted global growth and geopolitical turbulence as the key business concernsinthecurrentfiscal.