India Inc confidence down in April-June, says CII
Rising inflation and expectations of yet another hike in policy rates by the Reserve Bank has dampened the business confidence of Indian corporates for the April-June quarter, a survey today said.
Rising inflation and expectations of yet another hike in policy rates by the Reserve Bank has dampened the business confidence of Indian corporates for the April-June quarter, a survey today said.
According to CII's quarterly Business Outlook Survey, the Business Confidence Index (BCI) for April-June, 2011 declined to 62.5 from 66.7 in the previous quarter (January-March).It said the top three business concerns are high raw material cost, infrastructural shortages and high interest rates."Expectations appear to be relatively bleak due to uncertainties about international commodity prices, especially oil, expectations about further tightening of monetary policy and inflation which has been persistently high," it said.The headline inflation in the country stood at 8.66% in April. Inflation has been above the 8% mark since January 2010, much above the government's comfort zone of around 5%. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
