Industry Sees Growth But No Credit Availability: Survey, Indian Industry Sees Growth, Indian Industry Growth, Indian Industry News

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SME Times News Bureau | 11 May, 2010
Business confidence of India the Indian industry has improved further compared to the past six months but it still views credit availability as a concern area, according to a new survey released by the Confederation of Indian Industries (CII) on Monday.

The CII Northern Region Business Outlook Survey says that the overall outlook for business is better for the current six months (April - September 2010 -11) vis-à-vis actual performance for the last six months (October - March 2009 -10).

However, the survey findings reveal that credit availability is still a concern area with 74 percent of the respondents not seeing any increase in credit availability in the last six months. 67 percent of the respondents expect no change in the credit availability as against 61 percent reporting no change in the last six months.

Other areas of concern, as revealed by the respondents, are infrastructure and institutional shortages, cost & availability of labour followed by high interest rates and global economic instability.

"The clear priority that these scores throw up for Government action is the need for addressing infrastructure issues after having addressed issues related to demand stimulation," according to CII.

Outlook on India's exports, which according to experts are crucial for the country’s economic recovery, seems to be much better for the current six months. 59 percent of the respondents expect an increase in volume of exports as compared to only 39 percent actually reporting an increase in the last six months.

The CII survey has showed that 96 percent of the respondents expect GDP growth of 7 percent or more, 90 percent expect inflation to be 5 percent or higher, 64 percent believe that capacity utilization will be 7r percent higher, and 77 percent of the respondents expect the value of production to increase in the coming six months.

The survey is based on 137 responses received from industry across the UT of Chandigarh and the states of Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh and Uttarakhand.

56 percent of the respondents were from the manufacturing sector and 39 percent from the service sector. 46 percent of the respondents were small organizations, 39 percent from medium and 16 percent from large organizations. 18 percent of the respondents were from public sector organizations and the balance 82 percent from private sector.