The survey indicated slight moderation in the sentiments in demand condition for the second successive quarter
GN Bureau | January 27, 2017
The Reserve Bank of India’s Industrial Outlook Survey has indicated a decline in business sentiments.
This round of the survey was conducted during October-December 2016. The survey elicited response from 1,221 manufacturing companies. The survey provides qualitative assessment of business situation of companies in the Indian manufacturing sector for Q3:2016-17 and their expectations for the ensuing quarter Q4:2016-17. Results of 75th round (Q2:2016-17) of the survey were released on October 4, 2016 on the RBI website.
The survey responses are those of the respondents and are not necessarily shared by the Reserve Bank of India.
Read: India a bright spot in world economy: KPMG
On assessment for Q3:2016-17, the survey indicated slight moderation in the sentiments in demand condition for the second successive quarter. In respect of several parameters like order books, capacity utilisation and imports, the level of optimism was lower in this quarter than Q2:2016-17. However, the respondents were somewhat more optimistic about the export performance than Q2:2016-17 while the optimism on production remained unchanged.
Availability of finance from banks and other sources were perceived to have worsened. However, due to reduced pessimism about the cost of finance and the cost of raw material, the sentiment on profit margin remained largely unchanged.
Overall, the business sentiments of the Indian manufacturing sector, as inferred from the Business Expectation Index (BEI), deteriorated for the second successive quarter.
On expectation for Q4: 2016-17, the outlook on business sentiments in Q4: 2016-17 largely followed similar pattern. However, in respect of demand condition (Order Books, Production), the outlook deteriorated. Pressure from rise in cost of raw material was expected to bring down profit margin. Improved sentiments were expressed in pending orders, exports, and cost of finance.
Read: RBI’s Industrial Outlook Survey
Almost a week ago, Finance Bill, 2017, was passed in the Lok Sabha as a money bill in the midst of a walk out by the opposition. In the 92-page document of the bill, centre has pushed 40 amendments to various acts including the IT Act. Eminent people like Fali Nariman, Girish Karnad, TM Krishna, Arun
Bharat Heavy Electricals Limited (BHEL), a Maharatna PSU, has successfully commissioned 250 MW unit based on eco-friendly circulating fluidized bed combustion (CFBC) technology, using low grade coal (lignite) as the primary fuel. The 250 MW lignite
The Law Commission which had examined the issues of right to rejection and the right to recall, has not recommended for the same, the Lok Sabha was informed. Union minister PP Chaudhary said that the Law Commission of India was requested in January, 2013,
HCL founder Shiv Nadar tops the Hurun India Philanthropy list with Rs 630 crores donation towards education sector. Infosys co-founder Kris Gopalakrishnan and his wife Sudha Gopalakrishnan came in second with a donation of Rs 313 crores primarily towards healthcare, social development and education.
Keel of the first Coast Guard Offshore Patrol Vessel (CGOPV) of the new 5 CGOPVs project for the Indian Coast Guard was laid at Goa Shipyard Ltd (GSL) recently by ADG K Natarajan, PTM, TM Coast Guard Commander (Western Seaboard), in the presence of RAdm (Retd) Shekhar Mital, NM Chairman and Managing Dire
A pilot project of Digital Village (DigiGaon) is to be implemented in 1050 Gram Panchayats (GPs) spread across 30 States/UTs, the Lok Sabha was informed. Union minister PP Chaudhary said that the approved outlay for implementation of the project for finan