Given its bearing on the overall economy, a recovery in rural demand is eagerly awaited.
The latest CII Business Confidence Index for the October-December quarter of fiscal 2023 rebounded from 62.2 in the previous quarter to 67.6, its highest reading in almost two years
The index is based on the findings of a survey of over 120 firms of varying sizes across industry sectors and regions of the country.
Even as global economic growth is witnessing headwinds due to tightening financial conditions and geopolitical tensions, an overwhelming 73% of survey respondents expect only a moderate impact on the Indian economy.
The survey results present an encouraging prognosis, with 90% of the respondents expecting that their company's investment cycle will recover during the next fiscal.
Given its bearing on the overall economy, a recovery in rural demand is awaited and about 60% of respondents feel that a pick-up in rural consumption will take place in the next fiscal, says the CII.
With a resumption of business activity, expectations for the December quarter have improved, as the majority of respondents anticipate an increase in sales (60%) and a count of new orders (55%).