Skip to main content

Business sentiment shows demand back to pre-Covid Feb 2020 level: IIM-A survey

By Our Representative
The latest Business Inflation Expectations Survey (BIES) by the Indian Institute of Management-Ahmedabad (IIM-A) has suggested that even though the lockdown of the economy due to the ongoing Covid-19 pandemic has been partially lifted, 28% of the firms still expect significant (over 6%) cost increase as compared to the same time last year.
Around 54% of the firms believe that the current cost increase is ‘3.1% and above’ as compared to the same time last year – marginally up from 52% reported in August 2020, the BIES report says, noting “This is primarily driven by the firms indicating moderate cost increase (between 3.1% and 6%) in this round.” It adds, “However, overall cost perceptions data shows early signs of easing of cost pressures.”
Coming to sales, the report says, “Over 51% of the firms in September 2020 report that sales are ‘much less than normal’ as against 59% firms reported in August.” This suggests, it underlines, “There are clear signs of firms’ sales gradually getting back to the pre-Covid February 2020 level.”
“Similar sentiments are expressed for profit margin. Firms are moving from ‘much less than normal’ profit to ‘somewhat less than normal’ and 'about normal' profit category gradually”, the report states, adding, “Overall business sentiments indicate that demand is back to the pre-Covid February 2020 level.”
Thus, is says, “Over 54% of firms in the sample in September 2020 reported ‘much less than normal’ profit as against 57% in August 2020.” It adds, “Firms are moving from ‘much less than normal’ profit to ‘somewhat less than normal’ and ‘about normal’ profit category gradually.”
A monthly exercise begun in May 2017, BIES seeks to get a probabilistic assessment of uncertainty in the economy, even as providing an indirect assessment of overall demand condition of the economy in order to provide macro data required for policy making. Companies are selected primarily from the manufacturing sector. The latest September 2020 survey is based on the responses from around 1,100 companies.

Comments

TRENDING

India performs 'poorly' in Quality of Life Index, ranks 62nd out of 64 countries

Counterview Desk “Expat Insider”, which claims to be one of the world’s most extensive surveys about living and working abroad, in a survey of 20,259 participants from around the globe, has found that of the 64 destinations around the globe, has found that while Taiwan is the best destination for persons living outside their native country, closely by Vietnam and Portugal, India ranks 59th.

Youngest of 16 activists jailed for sedition, Mahesh Raut 'fought' mining on tribal land

By Surabhi Agarwal, Sandeep Pandey* A compassionate human being, always popular among his friends and colleagues because of his friendly nature and human sensitivity, 33-year-old Mahesh Raut, champion of the democratic rights of the marginalised Adivasi people of Gadchiroli, Maharashtra, has been in prison for over two years now.

India's GDP down by 50%, not 23%, job loss 200 million not 122 million: Top economist

By Our Representative  One of India’s topmost economists has estimated that India’s Gross Domestic Product (GDP) decline was around 50%, and not 23%, as claimed by the Government of India’s top data body, National Statistical Organization (NSO). Prof Arun Kumar, who is Malcolm S Adiseshiah chair professor, Institute of Social Sciences, New Delhi, said this was delivering a web policy speech, organised by the Impact and Policy Research Institute (IMPRI), New Delhi.

Human development index: India performs worse than G-20 developing countries

By Rajiv Shah A new book, “Sustainable Development in India: A Comparison with the G-20”, authored by Dr Keshab Chandra Mandal, has regretted that though India’s GDP has doubled over the last one decade, its human development indicators are worse than not just developed countries of the Group of 20 countries but also developing countries who its members.

Stan Swamy vs Arnab Goswami: Are activists fighting a losing battle? Whither justice?

By Fr Sunil Macwan SJ* It is time one raised pertinent questions over the courts denying bail to Fr Stan Swamy, who was arrested under the Unlawful Activities (Prevention) Act (UAPA), and granting it to Arnab Goswami, editor-in-chief of the Republic TV, arrested under the charge of abetting suicide of Avay Naik, who ended his life in 2018. It is travesty of justice that a human rights activist is not only denied bail but is also made to wait for weeks to hear a response to his legitimate request for a straw to drink water, while Arnab Goswami walks free.

US publication blames Gates Foundation for 'accelerating' India's healthcare crisis

By Rajiv Shah A new book, published by the New York-based Monthly Press Review (MPR), has blamed Microsoft founder Bill Gates for “crowning” the crisis allegedly engulfing India’s health sector, stating, the top American billionaire’s foundation of late has acquired “extraordinary influence" over India’s public health governance,  giving a fillip to a policy that deprives access of public healthcare facilities for majority of the country’s population.

India among heavily impacted by Covid-19, China 'notoriously' evading transparency

By NS Venkataraman* With the year 2020 inevitably ending in the next few weeks, the thought amongst the people all over the world is whether the coming year 2021 will be free of Covid-19 (often dubbed as Wuhan virus, as it known to have spread from Wuhan in China).In the early 2020, many people thought that Covid-19 would be a localized affair in China but later on, it proved to be a global pandemic.

Namaz in Mathura temple: Haridwar, Ayodhya monks seek Faisal Khan's release

By Our Representative As many as 23 members of the Hindu Voices for Peace (HVP), including the founder president of the well-known Haridwar-based Matri Sadan Ashram, Swami Shivananda Saraswati, and a one of its top monks, Brahmachari Aatmabodhanand, have expressed their “dismay” over the arrest of Khudai Khidmatdar chief Faisal Khan and three others on charges of “promoting enmity between religions” and “defiling a place of worship” after they offered namaz in Mathura’s Nand Baba temple premises on October 29.

Buddhist shrines massively destroyed by Brahmanical rulers in "pre-Islamic" era: Historian DN Jha's survey

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Government of India 'refuses' to admit: 52% of bird species show declining trend

Finn's Weaver  By Our Representative The Government of India has been pushing out “misleading” data on the country’s drastic wildlife decline, says a well-researched report, pointing towards how top ministers are hiding data on biodiversity losses, even as obfuscating its own data. It quotes “State of India’s Birds Report 2020” to note that of the 261 out of 867 bird species for which long-term trends could be determined, 52% have declined since the year 2000, with 22% declining strongly.