Industry will see growth in the next 6 months: Assocham

The Indian industry is expected to see growth by December in terms of sales and profitability even though fresh investments from the private sector continue to suffer due to under-utilisation of capacities, stated a survey conducted by Assocham.

The Assocham Bizcon survey, which covered 65.5 per cent of the companies under its June series, said that the macroeconomic parameters are expected to look up by December on account of a robust monsoon.

Demand to rise “Due to good monsoon, the consumer demand is likely to amplify which can result in moderate interest rates considering the crude oil prices that continue to remain muted,” Assocham Secretary-General DS Rawat said.

The survey further revealed that there will not be any changes in the firm investment plans and in the international investment plans as 37.9 per cent of respondents believe that domestic investment may increase or else will face no change in the shorter horizon.

According to the current round survey, the majority of the industry (55.2 per cent) feels that the present economic situation is better and in the coming six months there seems to be growing optimism in terms of the economic performance.

Lack of investment But investments continue to pose a challenge due to a lack of appetite within the private sector to put in money in fresh projects.

However, the survey did indicate a pick-up in job creation in the short-term due to improvement in the business atmosphere.