It is expected that if the domestic demand increases private investments would be encouraged. Recently, a survey was conducted by the Confederation of Indian Industry’s Business Confidence Index (CII-BCI), that showed that private investments would be bolstered by the increased domestic demand and high capacity utilization. The experts said that the new orders would be increased in the second quarter of the current fiscal year than it was in the first quarter of the same fiscal year. This update came after the survey showed that respondents are expecting the domestic demand would go up in the second quarter of FY24 much faster than it was in the first quarter of FY24. We have a lot more to share with you regarding the same in the following section. Drag down the page and take a look at the following section.
CII-BCI (Confederation of Indian Industry’s Business Confidence Index) carried out a survey that showed investors are being bolstered by the predicted increasing domestic demand, sales, and new orders in the second quarter of FY24 than in the previous quarter. Notably, two-thirds of the respondents of the survey expected the sales to increase in Q2FY24 than Q1FY24. More than 53 percent of respondents to the survey expect that capacity utilization in their company would remain in the range of 75 to 100 percent in the September quarter.
One-third of the respondents which is around 67 percent anticipated an increase in sequential sales in the Q2FY24 while 64 percent of respondents remained optimistic about the increasing new orders during the second quarter of the current fiscal year. Talking about the survey conducted by the Confederation of Indian Industry’s Business Confidence Index last month it covered around 200 companies around the country. Continue reading this article to learn more details.
Chandrajit Banerjee, the director-general of CII said, “In the last two surveys, too, the majority of respondents had expected their capacity utilization to be in the range of 75-100%, which is an encouraging sign as capacity utilization needs to be maintained between 75 and 80% to fuel fresh investments in the economy,” He further added the prediction of increasing domestic demand is encouraging and much-required for the inclusive growth of the economy. Chief economist adviser V. Anantha Nageswaran said in August that private sector capital formation had taken off which backed by the government’s capex push, with investment is expected to come back in a big way.