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.”

Gujarat Sachivalaya blacklists, denies entry to woman social activist: Will NHRC probe?

By Kantilal Parmar* I have approached the National Human Rights Commission (NHRC) seeking an independent, impartial, and transparent investigation into a serious incident that took place at the Gujarat Secretariat in Gandhinagar on August 18, 2026. The matter concerns social activist and women’s rights leader Chandrikaben Solanki, who, according to the information available to me, was denied an entry pass to the Secretariat when she went there to meet Gujarat’s Social Justice and Empowerment Minister, Dr. Manishaben Vakil, to raise an issue concerning social justice.

Ample evidence of child labour in South Gujarat's cash rich sugarcane belt: Study

By Rajiv Shah A recent German government-funded study , undertaken jointly by the NGO Prayas Centre for Labour Research and Action and the Rosa Luxemburg Stiftung, which mainly deals examines the working conditions of migrant workers in the cash-rich sugarcane zone of South Gujarat, has gone a long way to suggest large scale prevalence of child labour during the harvesting season.

Right to walk, right to livelihood: Clearing footpaths 'can't mean' clearing out the urban poor

By Aseem Mishra* India’s cities are locked in a quiet but intensifying struggle over one of their most contested public spaces: the footpath. For pedestrians, a footpath is basic infrastructure—a strip of ground that should allow people to move safely, independently and with dignity. For millions of informal workers, the same stretch of pavement is a workplace, a source of daily income and often the difference between survival and destitution.

Counterview

Search This Blog