Reality Check: No Substantial Change During First 6 Months Of Modi Govt, says ASSOCHAM

Contrary to the hype of economic turnaround, a survey conducted by the Associated Chambers of Commerce of India (ASSOCHAM) has revealed that there had not been any substantial change on the ground during the first six months of the Modi government. However, it expressed optimism that things will improve in the next few months.

“Not much has changed on the ground at the industry level in the last six months,” Assocham said, citing its ‘Business Confidence Index’ – a confidence-measuring survey conducted in December 2014.

According to 54% of the respondents, nothing much had changed at the ground level, while 58.3% of the respondents were optimistic that their sales volume will increase during January-March quarter (Q4). About 46% respondents said that they won’t make any change in their domestic investment plans in the fourth quarter, whereas 42% of those surveyed expected the prospects of hiring to improve in the coming months.

“Typically, investment follows improvement in sales and profitability. The latter — sales and profitability — are falling in place and there would be a visible change in the next few months following which investment should follow since there is always a lag,” ASSOCHAM concluded.