The Bombay Chamber conducts Economic Outlook Survey periodically to solicit inputs from member companies on BUSINESS CHALLENGES, FINANCIAL MARKETS and MACROECONOMIC POLICIES. The survey result highlights some challenges of doing business in India involving economic development generally and industrial development in particular. The same provides inputs for regulatory review. The previous survey was conducted and submitted to the Reserve Bank of India in December 2019.
This edition of the Outlook Survey has an additional section on COVID-19 where 41% of respondents confirmed that their Confidence Level has been improved post the Rs.20 Trillion package and the RBI announcement. However 76% of the respondents believe businesses will be impacted for at least coming three quarters or more. Also, identical 76% of the respondents do believe in FY 21 the top line growth will be negative and 66% opined that to revive business „salary cut‟ should be held between 10%-30%.Almost all respondents believe that they should shift from Producers and Consumers towards Local Products post the “Vocal for Local” announcement.
A comparison between recent two survey outcomes reveals-
Business Challenges have become more difficult with respect to- Credit to Industry, Issues related to E- way Bills and GST related issues. Secondly, problems have increased for factors like access to- Cash Credit and ‘Foreign Exchange Operations‟. Lastly, majority of the respondents expects “output prices” to go down over the next 6-12 months, whereas, expectations in increase in Repo Rate now is lower than previously.
However, 64% (December, 2019) & 76% (June, 2020) of the respondents largely belong to senior management and represented industries, banking and service sector. More than 54 %( December, 2019) & 34% (June, 2020) of the respondents are organizational head & senior management.
Larger companies consisted of 43.3% ( December, 2019) &40% ( June, 2020), midsized 23%(December,2019) &30%(June,2020) and small sized 34%(December,2019) and 20%(June,2020).
The findings are discussed in detail in the enclosed survey result.