India Inc’s confidence down, says survey

Business confidence of India Inc has dropped in the wake of the US sub-prime crisis, surging crude oil prices, high interest rates and the appreciating rupee, says an industry survey.

The Business Confidence Survey conducted by the Federation of Indian Chambers of Commerce and Industry (Ficci) on 321 companies also indicated that the outlook for exports, investments, employment and profit has taken a severe hit.

"The industry's perception is that growth is slowing down. The weakness in the growth momentum is not only due to the slowdown in exports but also due to moderation in other sectors of the economy," Ficci said in a statement.

The rupee, which has appreciated by almost 15 percent in the past one year, has adversely affected not only exports but also companies connected with the sector.

Industries ranging from capital goods, automobile and steel, to textiles, handicrafts, leather and marine products are all showing signs of a slowdown.

The chamber has suggested the central bank reviews its credit tightening policy.

Serious efforts should also be made to tackle the appreciation of the currency, it noted.

- Contributed by Ankita Sinha