India inc feels that macroeconomic issues, such as high fiscal deficit and
inflation are worsening and Centre should address these in the forthcoming budget, a survey by industry body the Associated Chambers of Commerce and Industry (Assocham) said.
The Assocham Bizcon surveyed 423 business leaders across the country on the current macroeconomic issues as well as their own company's performance during the past six months of financial year 2010-11.
The share of respondents reporting improvements in overall economic conditions as well as investment climate was less than 33 per cent. A considerable portion of participants (15.7 per cent) reported a worsening of macroeconomic conditions.
According to the survey, 86 per cent of the respondents said the operating conditions of businesses showed there was no let up of inflationary pressures.
"Raw material and energy costs remain high and are expected to go up further in the near term.
Per unit cost of raw material is reported to have increased in the third quarter of the current fiscal for about 88 per cent of participants," the survey said.
The power and fuel bill being paid by businesses was found to have increased, said about 86 per cent of respondents. Labour costs are already high and are projected to go up further. "Profit after tax (PAT) saw minor improvements in the manufactured goods sector. Difficult external scenario echoed in the profits of the services sector.
Rate of return on capital employed could also be seen falling," the survey said.
"The growth story will lose its momentum if existing macroeconomic concerns are not addressed and down-slide of corporate investments is not arrested," the study said. On business confidence, primary and secondary sectors indicated relatively higher confidence, while services and infrastructure firms were less confident.
"A variety of issues from fiscal consolidation, social sector spending, controlling inflation, SMEs growth and more responsible functioning of the bureaucratic set-up were stated as key macroeconomic issues," the survey said.
Courtesy: Mail Today 
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