India's Business Confidence Lowest Since 2008 Global Recession: FICCI Survey

by GoNews Desk 1 month ago Views 1242
India's Business Confidence Lowest Since 2008 Glob
The 40-day-long lockdown has broken the backs of industries and businesses in the country, even as concerns about the future grow and the economic crisis deepens.

The quarterly survey by FICCI - according to which business confidence in the country is reducing - has contributed to deepening worries over the prevailing situation.

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According to the FICCI survey, the Overall Business Index (OBI) in the country has plummeted to 42.9, which is the lowest since the worldwide economic recession of 2008. During the recession, the OBI had fallen to 37.8

In a survey conducted in the previous quarter, the same OBI was 59. This clearly means that the 40-day lockdown has created a frightening situation.

A large segment of traders is fearful that sales could remain low for the next six months.

Around 57 business people believe that it will be tough to get customers for anything for the next two quarters because people will not have money to spend on shopping.

There is a loss of trust related to jobs and only 19% entrepreneurs believe that jobs will be created in the next six months.

This survey shows clearly that fear regarding business in the country is growing and the economy is expected to remain weak in future as well.

However, the business community has also proposed an action plan which could lend some momentum to the economy.

According to this plan, debtors should be given 25% additional loan without any guarantee or security. 

Apart from this, the Bankruptcy Law should be amended and the duration for declaring a company bankrupt should be increased from 90 days to 360 days.

Banks should also increase loans so that money enters the market, the plan suggests.

The Central government should also announce a relief package for the business sector, among which tax holidays for small businesses, money for workers and other, similar measures should be included, it adds. 

Clearly, the global lockdown has caused economies around the world, including in India, to come to a standstill and this period is no less than a nightmare for any business person.

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