The Indian Economy is being buffeted by several adverse developments, so it’s small wonder that corporations are feeling low these days.
It’s official now; RBI survey highlights pessimism.
According to RBI’s Industrial Outlook Survey of manufacturing companies in the private sector, the actual business conditions indices for April-June and expectations for July-September, declined 5.4 per cent and 0.9 per cent, respectively, over the corresponding previous quarters.
Corporations are more pessimistic on the overall business outlook, financial situation, production, order books, cost of raw materials, capacity utilisation and profit margins than they were in the previous quarter.
Says M. Govinda Rao, Director, National Institute of Public Finance & Policy: “The cynicism is based on a realistic assessment of the macroeconomic outlook. We are definitely in a downturn now.”