India Inc. is stacking up substantial investments in capacity additions, modernisation and greenfield projects, FICCI's Business Confidence Survey for the second quarter of 2009-10 reveals. To sustain this, Indian industry now wants an interest rate cut of about 2.6 percentage points.
As the industrial and overall economic performance turns positive, corporate India's confidence is on the upswing and apart from continuance of the fiscal stimulus packages, industry is looking forward to an accommodative monetary policy. The reasons are not far to seek. One, industry's inflationary expectations are benign; its investments are on the rise and demand has still not climbed to the pre-slowdown levels.
The survey drew responses from 358 companies with a wide geographical and sectoral spread. Companies participating in this survey had a turnover ranging from Rs 2 crore to Rs 1,00,000 crore. The survey was conducted during the months of October and November 2009.
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