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Dip,dip,dip

The Indian Economy is being buffeted by several adverse developments, so it’s small wonder that corporations are feeling low these days.

Print Edition: August 24, 2008

The Indian Economy is being buffeted by several adverse developments, so it’s small wonder that corporations are feeling low these days.

 Slowdown blues

It’s official now; RBI survey highlights pessimism.

  • RBI survey shows that companies are pessimistic on future business outlook

  • Rising input costs emerge as a main concern

  • Companies looking at cutting inventories and increasing prices to deal with the situation

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.”

Rishi Joshi

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