Half of Indian firms say macro growth isn’t fully translating: CII survey
Summary
- A Confederation of Indian Industry (CII) survey found that 50% of Indian companies feel that the recent macro‑economic growth is not fully translating into business performance.
- The composite Business Confidence Score (BCS) rose sharply in Q2 FY2024 compared with Q1, indicating improving sentiment despite the translation gap.
- Survey covered firms across manufacturing, services and MSME sectors, with larger enterprises reporting higher optimism than small businesses.
- Key constraints cited were supply‑chain disruptions, high input costs and uneven demand recovery across regions.
Key Facts
- · 50% of firms say macro growth isn’t fully translating into business outcomes.
- · Composite Business Confidence Score increased significantly in Q2 FY2024 over Q1.
- · CII surveyed a cross‑section of manufacturing, services and MSME firms.
- · Large enterprises showed higher confidence than MSMEs.
- · Supply‑chain bottlenecks and high input costs were major concerns.
Why it matters
Business confidence is a leading indicator of private investment and employment generation; a gap between macro growth and firm‑level performance signals potential structural bottlenecks that policy makers need to address to sustain economic momentum.
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