Not much has changed under Modi govt: industry survey

Seven months after the Narendra Modi-led government came to power, majority of business leaders have said not much has changed at the ground level, however many are still optimistic of things improving within the first half of 2015, according to a survey.

“Not much has changed on the ground at the industry level in the last six months, but the situation is going to improve within first half of 2015, as reflected in the optimism about sales volume and hiring of workforce by corporates,” Business Confidence Survey by industry body Assocham said.

As many as 54.2 per cent of the respondents in the confidence measuring survey said not much has really changed at the operating level in the last six months. On the other hand, the survey, which was conducted in December 2014, indicates that the general consensus (62.5 per cent) at the industry level seems to be that their performance in the coming six months would improve.

The survey also found that 45.8 per cent of business leaders believe that the January-March 2015 quarter won't see any change in their domestic investment plans. Industry believes that exports market will remain sluggish as majority of respondents see no change in the exports volume.

Meanwhile, 41.7 per cent expect job hiring prospects to improve in the next quarter and in subsequent months.

“Typically investment follows improvement in sales and profitability. Sales and profitability are falling in place and there would be a visible change in the next few months after which investment should follow since there is always a lag,” Assocham Secretary General D S Rawat said.

As many 58.3 per cent of the respondents expect their sales volume to increase during the ongoing quarter, and 45.8 per cent forecast similar outlook for profits.