CII Business confidence Index hit 2-year high in October-December

Published on January 16, 2023
Current Context: The most recent CII Business Confidence Index for the October-December quarter returned to its best rating in almost two years, with a value of 67.6, according to the Confederation of Indian Industry (CII).
CII Business confidence Index hit 2-year high in October-December
  • This is an improvement over the previous quarter's figure of 62.2, which reflects confidence in India's position amid growing global uncertainty. The CII claimed that decreasing worries about the approaching recession and its effects on the Indian economy were to blame for the index's value's significant improvement.
  • The Index is based on research conducted among more than 120 businesses of various sizes, from all industry sectors and geographical areas of the nation.
  • Anticipated Growth Rate
    • The majority (70%) of survey participants predict that the Indian economy will grow between 6.5 and 7.5 percent in the current fiscal year, which ends in March, down from 8.7 percent in the previous fiscal. According to the most recent first advance estimates, the GDP print for the current fiscal year is 7%.
  • Effects of Policy Rate Increases
    • According to the survey, nearly half of the respondents (47%) said they had already begun to see how the Reserve Bank of India's (RBI) policy rate increases were affecting the country's general economic activity.
    • High-interest rates have also impacted the level of private investment. Public capital expenditures, backed by private capital expenditures, are currently doing most of the heavy lifting to support growth.
  • Economic Headwinds Worldwide
    • Even though tighter financial conditions and geopolitical tensions are hampering global economic growth, an overwhelming 73% of survey participants anticipate just a mild effect on the Indian economy. The fact that 86% of respondents think the government's emphasis on infrastructure is the biggest plus for the Indian economy explains the respondents' confidence.
  • Cycles of Investment Recover
    • The survey results show a positive outlook, with 90% of respondents believing their company's investment cycle will improve during the upcoming fiscal year. About 52% of respondents anticipate a rebound in the first half of the upcoming fiscal year, while 37% anticipate an increase in investment by the second half of the year.

Question: 

Q.1 Who releases the Business confidence index?
a. Confederation of Indian Industry (CII)

b. SEBI
c. SBI
d. NABARD

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