Economy

Credit availability still a concern for industry: CII survey

Credit availability continues to be a major concern area for the industry as 74 per cent of industry representatives of northern region complained of not observing any improvement in credit availability in last six months, according to a CII survey.

Moreover, 67 per cent respondents expect no change in the credit availability in next six months though 47 per cent expect increase in cost of credit in the same period, the survey highlighted.

According to the CII Northern Region Business Outlook Survey, the overall outlook for business is better for the current six months (April—September 2010—11) versus actual performance for the last six months (October—March 2009—10).

The Survey is based on 137 responses received from industries across Chandigarh and the states of Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh and Uttarakhand.

Among them, 56 per cent were from the manufacturing sector, 39 per cent from the service sector while 46 per cent represented small organisations.

Infrastructure and institutional shortages followed by cost and availability of labour are the other two most important areas of concern, the survey highlighted.

It also found that 96 per cent of the respondents expect GDP growth of 7 per cent or more as against only 16 per cent in the previous October-March 2009-10.

It further said that 90 per cent of the respondents expect inflation to be 5 per cent or higher suggesting high inflationary expectations, on the back of the headline inflation nearing double digits.

The survey also looked into the expectations on various elements that build up business confidence including investments, capacity utilisation and sales etc.

Capacity utilisation is expected to improve with 64 per cent of the respondents expecting a capacity utilisation of greater than 75 per cent as against only 38 per cent reporting a capacity utilisation of more than 75 per cent in the last six months.

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Printable version | Apr 5, 2020 7:41:35 AM | https://www.thehindu.com/business/Economy/Credit-availability-still-a-concern-for-industry-CII-survey/article16301527.ece

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