The Indian economy is not in a good shape, with GDP growth contracting 23.9% in the first quarter of the current fiscal. Recently, multiple rating agencies has further cut the economy's growth forecast down for FY21, but according to some economy watchers, things are still not that bad. A new poll of industry honchos also reflect this optimism, which would further be bolstered if the government announces another round of stimulus package in the coming days.
CEOs of top 115 companies from across sectors who met recently at CII's National Council, indicated revival of positive business sentiment and gradual rise in expected corporate performance. Deliberating on a virtual platform, they viewed that with the unlocking of almost all economic activities along with the reform and revival measures announced by the Government and RBI, business sentiment has improved and a steady recovery is likely during the second half of the financial year 2020-21.
The poll found that when it comes to consumer demand, 32% of the CEOs are hoping for better prospects against 27% expecting no change on a year-on-year basis. On revenue growth, 31% are expecting growth. On exports, 40% are expecting better prospects against 24% expecting no change in prospects. These figures are not that encouraging, but they still raise hope. Besides, the poll shows that there are clear indications of recovery in sectors like automobiles, FMCG, consumer durables and construction equipment.