Growth outlook for H1FY23 robust despite monetary policy tightening: CII poll

A recent poll conducted by the industry body Confederation of Indian Industry (CII) revealed that despite the sharp increase in inflation and heightened inflation, expectations and concerns around monetary policy tightening, the overall growth outlook for the first half of the current financial year looks robust.

A recent poll conducted by the industry body Confederation of Indian Industry (CII) revealed that despite the sharp increase in inflation and heightened inflation, expectations, and concerns around monetary policy tightening, the overall growth outlook for the first half of the current financial year looks robust. The industry body conducted the poll, which saw the participation of 136 CEOs from across the country.

Referring to their own company's prospects, a considerable share of the chief executives revealed an upbeat sentiment. The poll revealed that 44 percent of the participants felt that the revenue growth would be in the range of 10 percent to 20 percent during the first half of FY23, whereas 32 percent of the participants anticipate a jump in revenues of more than 20 percent.

This optimism prevailed with respect to profits as well. 45 percent of the participants indicated that their company's profit growth is likely to increase more than 10 percent, closely followed by 40 percent of them who believed that profit growth may stand slightly lower -- up to 10 percent. "The CII CEOS Poll results clearly demonstrate the resilience of Indian industry and the positive business performance outlook both on domestic as well as exports front despite challenges of high inflation leading to monetary tightening, rising input prices and uncertain global economic conditions", said Chandrajit Banerjee, Director General of CII.

About half of the respondents foresee inflation to be in the range of 7 percent to 8 percent during H1 FY23. Further, two-thirds of the participants were of the view that now the state governments must act to reduce taxes on fuel taking cues from the Central government.