India Inc on a downward journey

May 07: The latest acquisition of companies, all around the world by Indian and Indian born businessmen may have drawn India on the corporate world map, but overall effect has not been an encouraging one. According to latest survey reports Indian companies are witnessing downfalls and lack confidence with which they started some years ago.

A survey conducted by FICCI revealed that for the last two years India Inc efficacy is fading as rising credit costs begin to hit the overall business confidence of the industry.

After collecting responses from 418 companies, the chamber's Business Confidence Survey BCS, showed that the assessment made by corporate India regarding economic, industry and farm level performance has been moderate.

The survey revealed that the overall Business Confidence Index has taken a beating compared with the index in the third quarter of 2006-07, and is down from 75 to 69.

According to FICCI’s statement: “At the enterprise level, a larger percentage of firms expect to export and invest more and generate additional employment in the next six months, while fewer firms anticipate higher profits and sales.�

The Chamber computed three confidence indices -- the Current Conditions Index, the Expectations Index and the Overall Business Confidence Index – have shown a sharp dip, confirming reduced confidence level among the Indian corporate. With this Significantly Optimistic zone phase of the indices in last quarter have dipped to Moderately Optimistic zone.

Observers have painted a very dismal picture of India Inc due to dampening of its high flying spirit, which has been unfortunately revealed by the survey.