41% say Rs 20 trillion govt package improved their confidence: Economic Outlook Survey
The result of the survey, conducted by the Bombay Chamber of Commerce & Industry among the member companies, has been submitted to the RBI and Central government authorities
The Bombay Chamber of Commerce & Industry has released its Economic Outlook Survey. The latest edition of the survey, which is being conducted among the member companies since 2018, has an additional section on COVID-19 this year.
In the survey, 40.4% the respondents believe that their confidence level did improve because of the Rs 20 trillion package announced by the government post the pandemic and other recent announcements by the RBI. However, 76% of the respondents believe businsses will be impacted for at least coming three quarters or more. Also, identical 76% of the respondents believe the top line growth will be negetive in FY21.
Futher, the survey found that 66% of the respondents opined that salary cut between 10 and 30% should be carried out to revive business. Also, 51% of the respondents believe that discounting will be needed in their business once the economy reopens.
Almost all respondents said they will shift from producers & consumers towards local products post the 'Vocal for Local' announcement.
When asked about the challenges they see in conducting business over the next 6-12 months, the respondents listed the follwoing: increasing energy prices, demand conditions in the domestic economy, cost of capital/credit to the industry, GST issues and changes in government policies with respect to taxes or subsidies.
The survey result has been submitted to the RBI and other Central government authorities.
The Bombay Chamber conducts Economic Outlook Survey periodically to solicit inputs from member companies on business challenges, financial markets and macroeconomic polices. The survey result highlights some challenges of doing business in India involving economic development generally and industrial development in particular. The same provides inputs for regulatory review. The previous survey was conducted and submitted to the Reserve Bank of India in December 2019.
