New Delhi: The Confederation of Indian Industry (CII) has reported a positive economic forecast for India's second quarter (Q2) of the financial year (FY) 2025, indicating an expectation for increased export orders and a rise in employment sentiment within the nation. This assessment is based on a survey conducted by the industry body.
During the second quarter of FY 2025, the industry anticipates a surge in export orders, attributed to a modest improvement in the external environment, as per the findings of the survey.
Forty-one percent of the respondents expressed confidence in the potential for enhanced export orders.
Regarding imports, a significant majority of respondents expect no change in their orders for the second quarter, with 21 percent anticipating an increase in such orders.
Furthermore, the survey sheds light on the employment landscape and business prospects within Indian enterprises.
It was noted that industries have shown a positive response to the emergence of employment opportunities across various sectors, with nearly half of the respondents (49 percent) expecting an improvement in hiring rates during the second quarter of the current fiscal year.
The survey identified several key drivers of growth for the current financial year, including stability in the overall economy, the emergence of employment opportunities across sectors, a steady progression in the monsoon season, continued focus on reforms, and new investments in the private sector.
Forty-one percent of the respondents expect the employment situation within their organizations to remain unchanged during the same period, as reported.
However, the survey also highlighted several concerns among businesses, with protracted geopolitical tensions, a rise in global commodity prices, and a slowdown in external demand identified as the top three issues.
As per the survey, approximately 24 percent of businesses cited protracted geopolitical tensions as their primary concern for the next six months.
Meanwhile, 18 percent of businesses expressed concerns about the spike in global commodity prices, with 18 percent worrying about a slowdown in external demand during this period. Additionally, 17 percent of businesses highlighted skewed consumption demand as a significant risk to their business confidence over the next six months.
The 128th round of the CII Business Outlook Survey was conducted in September 2024, encompassing over 200 firms of diverse sizes and across various industry sectors and regions.
