With speed up in the unlock process, the impact of the effort to bring the economy on track has started showing. For the second quarter (July-September), the business confidence restoration index (Business Confidence Index, BCI) of entrepreneurs saw an increase of 9% over the first quarter. In the second quarter, the BCI reached 50.3% against the BCI at 41% in the first quarter (April-June) of the current fiscal. The results were reported in the survey conducted by the industrial organization CII during the months of August and September.
According to the CII survey, 50% of entrepreneurs are expected to increase their sales and new orders. However, 50% of entrepreneurs are expecting their profits to decline. According to the survey, 46% of entrepreneurs also believe that the inflation rate will increase in the coming months of the current financial year. 18% believe that the inflation rate will be reduced, and 28% believe that it is expected to remain at the same level of inflation in the coming months.
Most of the entrepreneurs are no longer expecting a change in the monetary policy of the RBI. 37% of the entrepreneurs who participated in the survey believe that the RBI will no longer cut rates. However, 20% of the entrepreneurs are expected to further cut the RBI rates by 25 basis points in the current financial year. The survey also revealed that the workers who went back to their original state due to corona are now returning rapidly. 42% of the entrepreneurs said that 75% of their laborers have returned to work. 22% of entrepreneurs are expressing the possibility of the rest of the workers returning in the coming months. 44% of the entrepreneurs have not made any change in their investment plan at the domestic level in the second quarter of the current financial year, —40% of the decline in business investment in the current quarter in India. Only 16% spoke of the increase in the domestic investment scheme in the current quarter. However, entrepreneurs are not very hopeful about their profits in the second quarter. 49% of the entrepreneurs expressed hope for a decline in their post-tax profits in the second quarter. Only 25% of entrepreneurs are expected to increase net profits in the second quarter. 26% are not expected to change the financial outcome of the company.
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