According to a survey conducted by the Confederation Indian Industry (CII) reveals several facts regarding the country – Business Confidence Index (BCI) enhanced, growth in the economic conditions of the country in the third quarter of FY 2018. Although, demonetization fades and GST woes start settling down slowly.
The Business Confidence Index (BCI) has enhanced up to 59.7 in the period of October-December 2017 from 58.3 in the preceding quarter, which showed an improvement in overall economic conditions of the country.
CII said, “Though the index had recorded a fall in the previous quarter, sliding to the level of 58.3 in July-September 2017 from 64.4 in April-June 2017, the recovery recorded in this quarter (October-December 2017) is indicative of the improvement in the business environment, post the implementation of GST.”
It is anticipated that the GDP growth rising to 6.5 percent in FY18. Out of them, it is anticipated that a large share of 40 percent GDP growth lies in between 6.5 to 7 percent in FY 2018. The figures of GDP growth has been forecasted by the various central bank and international organizations such as Asian Development Bank (ADB), International Monetary Fund (IMF).
CII said that it is anticipated that the improvement in the economic conditions of the country in the coming quarters and GDP growth rising to 6.3 percent in the second quarter of FY18. CII also said that a large number of respondents feel that the payment process under GST will become easier by the FY 2019, just about one year after the introduction of new tax reform. Among the participants, 28 percent participants feel that the GST implementation issues would end by the first quarter in FY 2019, whereas 21 percent feels that it would end by the last quarter in 2018 FY.
Chandrajit Banerjee, Director General of CII said, “The survey underscores the perception that the economy is on a sustainable recovery path, with the many government interventions having an impact on the ground. The climb in business confidence underpins the hope that the upward trend one is seeing on macro figures would be sustained.”
