The CEOs of the top 115 companies, which included ten weeks in the national council of industry body CII, have indicated signs of improvement in business sentiment and a gradual jump in performance of companies. CII said on Sunday that these CEOs (CEOs) participated in a survey. The CEOs surveyed were representatives of metals and mining, manufacturing, vehicles, pharma, health, energy, infrastructure, construction and leading services sectors such as ITES, health hospitality tourism and e-commerce.
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The industry organization said, the continuing recovery of the Indian economy is continuing as Corporate India is resuming trade and economic activity with lockdown in many parts of the country. He said that Indian industry is now forecasting capacity utilization of more than 50 percent in the second half of this financial year.
However, according to CII, both the central and state governments will need to focus on livelihoods apart from life. For this, efforts should be made to prevent repeated lockdowns by states as well as districts. The organization stated that the lockdown not only impedes the revival of economic activities, but also does not yield the desired results on the issue of life.
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CII said, it is necessary to demand to fully open the economy, which will accelerate capacity utilization. CII said business sentiment has gradually improved in the second half of the current financial year with the unlocking of most economic activity, along with reforms and revival measures announced by the Center and the RBI.
Optimism is returning to business
The pace of recovery in the economy affected by the Corona virus epidemic will be slow, but there are signs of hope in the demand for loans and improvement in credit offtake. This view has been expressed by Amitabh Chaudhary, Chief Executive Officer (CEO) and Managing Director (MD) of private sector Axis Bank. However, he doubted that the government was going to take additional measures of relief for the economy. He said that the economy will grow in L shape.
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If an economy recovers rapidly after falling, it is called a ‘V-shaped reform in economics. Similarly, if an economy remains sluggish for some time after a decline and then recovers rapidly, it is called ‘U-shaped improvement’. However, when the economy takes a long time to recover after a sudden downturn, this situation is called L-shaped correction.
“My assessment is that the macroeconomic situation has improved significantly, especially in the last month,” Chaudhary said in a conversation. I am seeing a clear return of optimism. This becomes apparent when I interact with the CEOs of various organizations and when I gather information about new debt, credit card expenses and new accounts, etc.