Industry sees uptick by Dec: Assocham Survey

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A man welds together steel wheels, part of equipment used for packing medicine, inside a manufacturing unit in the western Indian city of Ahmedabad December 12, 2011. India's industrial output fell in October for the first time in more than two years as capital goods investment slumped, ramping up pressure on the central bank to ease monetary or liquidity conditions, possibly as soon as Friday. REUTERS/Amit Dave (INDIA - Tags: BUSINESS EMPLOYMENT TPX IMAGES OF THE DAY INDUSTRIAL)

India Inc expects growth in sales and profitability to pick up by the year-end in sync with an uptick in the big macro picture, according to a survey.

However, the survey also noted that private sector remains elusive with regard to pumping in fresh investment due to continuous under-utilisation of capacities.

The Assocham Bizcon Survey revealed that as many as 65.5 per cent companies expect macroeconomic parameters to look up by December.

Along with it, an equal percentage of the firms across different sectors said the performance at the industry level would also pick up with a consequence that there would be better sales realisation and improvement in profitability.

“The survey tells us how things would look up in the next six months, mainly on the back of uptick in consumer demand helped by a good monsoon.

“If consumer prices ease after the monsoon plays out, we can even hope for the interest rates to moderate,” Assocham Secretary General D. S. Rawat said.

“Fortunately, crude oil prices continue to remain muted despite threats of a rebound earlier.”

According to the survey, 69 per cent of the respondents shared optimism about better prospects even at the individual firms’ level, translating into overall corporate earnings in the coming two quarters.

However, it indicates that industry is not confident about investment plans as 37.9 per cent of respondents believe that domestic investment may increase or there will be no change in the