“The falling index value is reflective of the low businesssentiments that has been prevailing for the last few quarters”, saidMr.Chandrajit Banerjee, Director General, Confederation of Indian Industry.
The 80th Business Outlook Survey reveals that Stagnancy inreforms is the top concern of most firms, followed by Slackening consumer demandand High interest rates. “CII has been recommending implementation of reformsin the areas of indirect taxation, land acquisition, fast clearances of pendinginfrastructure projects and fiscal consolidation in order to improve businessconfidence and revive the growth outlook for the economy. The FinanceMinister’s comments on these in the last week is most encouraging in thiscontext. Given that slackening demand is now a key concern, the RBI should nothave any reservations about reducing interest rates,” said Mr. Banerjee.
The survey reveals that majority of the respondentswitnessed stagnancy in their overall sales, new orders, value of production,inventory levels and employment in the first-quarter of 2012-13.
