New Delhi: A majority of Indian industry showed buoyancy in Q3 of 2005-06 and projected higher levels of investment primarily in capacity augmentation in next six months, but hoped the Budget for 2006-07 would restructure corporate and personal income taxes and rationalise indirect taxes to stimulate demand to continue with the positive trend.
"Indian industry, on the aggregate, is buoyant and confident. But there is an obvious weariness when it comes to inidividual firms with regard to demand conditions, sales, profits and exports," FICCI General Secretary Amit Mitra told reporters releasing the busienss confidence survey on Sunday.
"Industry is happy, content and running high, but this could plateau. The industry is expecting some measures in the Budget which would stimulate growth and help the industry to move up to the next growth trajectory," Mitra said.
Reforms in the tax structure was necessary to keep the consumer spending which would create demand, Mitra said, adding that government's spending on infrastructure like ports, airports, health and education were also important to boost industry investments.
Budgetary decisions to improve the consumer confidence would translate into higher demand and help sustain the strong investment activity which the economy is witnessing at present, the survey said.
The respondents expressed concern about rising input costs which would also impact sales, profits and exports.
With 71 per cent of the respondents reporting capacity utilisation in excess of 75 per cent, the firms expect a surge in investments for capacity augmentation.
Comments
0 comment