High cost increase, muted sales 'severely affecting' industry profits: IIM-A survey

By A Representative
The Indian Institute of Management-Ahmedabad's (IIM-A's) Business Inflation Expectations Survey (BIES), which seeks to provide ways to examine the amount of slack in the economy by polling a panel of business leaders about their inflation expectations in the short and medium-term, has said that high cost increase along with muted sales has severely affected industry profit margins in India.
Pointing towards hardening of cost pressures and subdued sales expectations, the BIES report says, around 70% of the firms perceived significant (over 6%) cost increase, as against 62% reported a month earlier.

“Over 39% of the firms perceive that costs have increased very significantly (over 10%), as compared to 36% reported in the earlier round. For the first time, around 2/5th of the firms reported more than 10% cost increase”, the survey report states.
Pointing out that firms’ sales expectations, the report, based on a survey of about a thousand top business executives, says, the firms reporting ‘much less than normal’ sales was at 36-37%, adding, over 59% of the reported that sales were ‘much or somewhat less than normal.”
As for profits, says the survey report, claiming to be unique “in that it goes straight to businesses -- the price setters -- rather than to consumers or households to understand their expectations of the price level changes”, over 52% of the firms in the sample reported ‘much less than normal’ profit – “only marginally down from 54% reported earlier”.

The report further says, one year ahead business inflation expectations, as estimated from the mean of individual probability distribution of unit cost increase, have further increased by 15 basis points to 6.09% from 5.94% reported a month earlier.
Noting that respondents were also asked to project one year ahead CPI headline inflation through an additional question using a probability distribution, the report adds, “The businesses expect one year ahead CPI headline inflation to be 5.74%, sharply up from 4.96% reported in December 2021.”

Comments

Manufacturing, services: India's low-skill, middle-skill labour remains underemployed

By Francis Kuriakose* The Indian economy was in a state of deceleration well before Covid-19 made its impact in early 2020. This can be inferred from the declining trends of four important macroeconomic variables that indicate the health of the economy in the last quarter of 2019.

Civil society flags widespread violations of land acquisition Act before Parliamentary panel

By Jag Jivan Civil society organisations and stakeholders from across India have presented stark evidence before the Parliamentary Standing Committee on Rural Development and Panchayati Raj , alleging systemic violations of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act, 2013 , particularly in Scheduled Areas and tribal regions.

Food security? Gujarat govt puts more than 5 lakh ration cards in the 'silent' category

By Pankti Jog* A new statistical report uploaded by the Gujarat government on the national food security portal shows that ensuring food security for the marginalized community is still not a priority of the state. The statistical report, uploaded on December 24, highlights many weaknesses in implementing the National Food Security Act (NFSA) in state.

Why Indo-Pak relations have been on 'knife’s edge' , hostilities may remain for long

By Utkarsh Bajpai* The past few decades have seen strides being made in all aspects of life – from sticks and stones to weaponry. The extreme case of this phenomenon has been nuclear weapons. The menace caused by nuclear weapons in the past is unforgettable. Images of Hiroshima and Nagasaki from 1945 come to mind, after the United States dropped two atomic bombs on the cities.

Incarceration of Prof Saibaba 'revives' the question: What is crime, who is criminal?

By Kunal Pant* In 2016, a Supreme Court Judge asked the state of Maharashtra, “Do you want to extract a pound of flesh?” The statement was directed against the state for contesting the bail plea of Delhi University Professor GN Saibaba. Saibaba was arrested in 2014, a justification for which was to prevent him from committing what the police called “anti-national activities.”

The soundtrack of resistance: How 'Sada Sada Ya Nabi' is fueling the Iran war

By Syed Ali Mujtaba* The Persian track “ Sada Sada Ya Nabi ye ” by Hossein Sotoodeh has taken the world by storm. This viral media has cut across linguistic barriers to achieve cult status, reaching over 10 million views. The electrifying music and passionate rendition by the Iranian singer have resonated across the globe, particularly as the high-intensity military conflict involving Iran entered its second month in March 2026.

Concentration of wealth in India at levels 'comparable to colonial times', says new report

By Jag Jivan A new report published in March 2026 by the Centre for Financial Accountability and the Tax The Top campaign paints a stark picture of deepening economic disparity in India, documenting a concentration of wealth that it argues is “comparable to colonial times.” Titled Wealth Tracker India | Tax the Top. Close the Gap , the compilation presents data from the World Inequality Database and the Hurun Rich List to illustrate the meteoric rise of the ultra-wealthy alongside the stagnation and debt burdens of the majority.

Protesters in UK cities voice concerns over alleged developments in Bastar region

By A Representative Demonstrations were held across several cities in the United Kingdom on March 28, as groups and activists gathered to protest what they described as state actions in India under the reported “Operation Kagar.”

Dr. Ram Bux Singh: Biogas pioneer’s legacy gains urgency amid energy crisis

By A Representative In an era defined by a global energy crisis and a desperate search for sustainable solutions, the visionary work of an Indian scientist from the mid-20th century is finding renewed, urgent relevance. Dr. Ram Bux Singh , a pioneering figure in biogas and renewable energy , is being posthumously honored by the Government of India, even as his decades-old innovations provide a blueprint for today’s challenges.

Search This Blog