High costs offset sales, mute profits: IIM-A report amidst GoI's high GDP growth claim

By A Representative
The latest round of Business Inflation Expectations Survey (BIES) of the Indian Institute of Management-Ahmedabad (IIM-A), which seeks to provide ways to examine the amount of slack in the economy by polling a panel of India's business leaders, has said, "Improved sales expectations are offset by high cost increases. As a result, profit expectations remain muted."
Conducted each month by the Misra Centre for Financial Markets and Economy, IIM-A, by polling responses from around 1,000 companies, the survey results have been released amidst the Ministry of Statistics and Programme Implementation, Government of India (GoI) claiming that Gross Domestic Product in 2021-22 grew by a whopping 8.7%, and the Reserve Bank of India (RBI) predicting that the economy would grow at 7.2% in 2022-23.

The BIES report said, "The cost perceptions data indicates persistence of high cost pressures. Over 66% of the participating firms in the survey perceive significant (over 6%) cost increase for the consecutive three months." It added, "Over 36% of the firms in April 2022 round of the survey perceive that costs have increased very significantly (over 10%). For the consecutive four rounds, over 36% of the firms reported more than 10% cost increase."
This happened every as the "firms’ sales expectations in April 2022 have further improved. Percentage of firms reporting ‘much less than normal’ sales has marginally declined. Notably around 28% -- highest in the last 5 years -- of the firms in April 2022 report that sales are ‘about normal’,", the report said.

And yet, as cost pressure remained high, the report asserted, "For the past 4 consecutive rounds, over 77% of the firms in the sample are reporting ‘much less than or somewhat less than normal’ profit."
The report further said, "The business inflation expectations remained above 6% for the third consecutive month.The uncertainty of business inflation expectations in April 2022 has remained around 2.1%, same as reported during February-March 2022." It added, "The businesses in April 2022 expect one year ahead CPI headline inflation to be 5.90%, further up from 5.74% reported in February 2022."

Neville Cardus: The man who turned cricket writing into poetry

By Harsh Thakor* Neville Cardus was one of the most remarkable literary figures of the twentieth century. A prolific English writer and critic, he achieved distinction in two vastly different fields: cricket and classical music. Entirely self-taught, Cardus rose from humble beginnings to become both the cricket correspondent and chief music critic of The Manchester Guardian . His achievements in these contrasting disciplines earned him widespread acclaim and established him as one of the foremost critics of his generation. In February 2025, the cricketing and literary world marked the fiftieth anniversary of his death, which occurred in February 1975.

Ideological shifts and structural realities within India's left-wing insurgency

By Harsh Thakor* The Maoist insurgency in India is arguably at its weakest point since the formation of the Communist Party of India (Maoist) in 2004. Years of sustained counterinsurgency operations, leadership losses, shrinking territorial influence, declining recruitment, and growing technological advantages enjoyed by the state have significantly eroded the movement's operational capabilities.

The Dalit body on screen: Stereotypes, sacrifice, and subjugation in Hindi films

By Dr. Prem Singh* Despite centuries of reformist efforts, from Gandhi and Ambedkar to contemporary activists, the caste system remains deeply embedded in the Indian psyche. One of the primary reasons for this persistence is the religious sanction provided by Brahminical scriptures, which have shaped not only social structures but also cultural and artistic expressions.

Counterview

Search This Blog