New Delhi: India Inc expects moderate improvement in growth in the coming days which is supported by recovery in both domestic demand and investment cycle, according to CII-ASCON Industry survey.
The survey, which tracks the sectoral growth trends through the responses collected from sectoral industry bodies, reveals moderate improvements in growth trends in terms of production in April-June FY19 period, CII said on Sunday.
CII said that exuding optimism on the near-term growth outlook, 63.6 per cent of the respondents expect the business situation in their respective sector to improve moderately where as 31 per cent expect the situation to remain same in the next six months.
“Overall, going forward the results point towards moderate improvements in growth trends supported by recovery in domestic demand and investment cycle in the coming quarters supported by consumption both in rural and urban fronts aided by favourable monsoons and moderation in inflation and the onset of festive season,” said CII.
It said that current expectations on the investment outlook for the next two months also points towards an impending recovery in investment cycle supported by improving capacity utilisation levels amidst domestic demand recovery. Further, a continuous push to reforms such as GST, PSU bank recapitalisation and time-bound insolvency resolution would also support the recovery, said CII.
The chamber said that out of the sectoral responses received for 70 sectors, there was a sharp increase in the sectors witnessing ‘excellent’ growth in April-June (Q1) FY19, as compared to the same quarter a year ago.
It said that share of sectors witnessing ‘excellent’ growth has improved to 14.3 per cent (10 out of 70 sectors) in Q1 FY19 from 5.7 percent in Q1 FY18. At the same time, the share of sectors recording ‘high’ growth and ‘moderate’ growth has improved marginally while the share of sectors witnessing ‘low’ growth has come down substantially, it said.
“The share of sectors registering ‘high’ growth has inched up to 21.4 percent in Q1 FY19 from 20 per cent in Q1 FY18 whereas the share of sectors witnessing ‘moderate’ growth has improved somewhat to 44.3 per cent in the Q1 FY19 from 42.9 per cent in same period a year ago,” said CII.