Skip to main content

'Cost pressure decreasing': IIM-A survey reveals early signs of economic recovery

By A Representative 
The Indian Institute of Management-Ahmedabad’s (IIM-A’s) Business Inflation Expectations Survey (BIES), which examines the amount of slack in the economy by polling a panel of business leaders about their inflation expectations, has said that while the past five months’ survey had found around four-fifths of the firms reporting ‘much less than or somewhat less than normal’ profit, the latest round in June suggested that profit expectations are beginning to show “early signs of optimism.”
Stating that the cost perceptions data indicates “persistence of high-cost pressures”, with over 65% of the participating firms in the survey “perceive significant (over 6%) cost increase for the consecutive four months”, the BIES report, however, said, “Percentage of firms perceiving over 10% cost increase y-o-y has declined sharply. Over 25% of the firms in June 2022 round of the survey perceive that costs have increased very significantly (over 10%) – down from 34% recorded in May 2022.”
It further said, firms’ sales expectations, too, have begun showing “signs of optimism”, as the percentage of firms reporting ‘somewhat less than normal’ sales has “declined sharply to 28% in June 2022 from 34% reported in May 2022.” Thus, “Around 27% of the firms in June 2022 report that sales are ‘about normal’, up from 23% reported in May 2022. ‘Normal’ means as compared to the average level obtained in the preceding 3 years, excluding the Covid-19 period.”
Conducted every month at the Misra Centre for Financial Markets and Economy, IIM-A, by obetaining responses of around 1,000 companies, the BIES report also said that one year ahead business inflation expectations in June 2022 have “declined by 41 bps to 5.17% from 5.58% reported in May 2022.”
“There are clear signals of business inflation expectations moderating”, the report said, adding, “The businesses in June 2022 expect one year ahead CPI headline inflation to be 5.50%, sharply down from 5.90% reported in April 2022, with a relatively low standard deviation of 1.0%.

Comments

TRENDING

Nepal votes amid regional rivalry: Why New Delhi is watching closely

By Nava Thakuria*  As Nepal holds an early national election on Thursday (5 March 2026), the people of northeast India, along with other regional observers, are watching the proceedings closely. The vote was necessitated after the government of Prime Minister Khadga Prasad Sharma Oli collapsed in September 2025 following widespread anti-government protests. The election will determine the composition of the 275-member House of Representatives, originally scheduled for 2027, under the stewardship of an interim government led by former Supreme Court justice Sushila Karki.

'Policy long overdue': Coalition of 29 experts tells JP Nadda to act on SC warning label order

By A Representative   In a significant development for public health, the Supreme Court of India has directed the Food Safety and Standards Authority of India (FSSAI) to seriously consider implementing mandatory front-of-pack warning labels on pre-packaged food products. The order, passed by a bench of Justices J.B. Pardiwala and K.V. Viswanathan on February 10, 2026, comes as the Court expressed dissatisfaction with the regulatory body's progress on the issue.

Vaccination vs screening: Policy questions raised on cervical cancer strategy

By A Representative   A public policy expert has written to Union Health Minister J. P. Nadda raising a series of concerns regarding the national Human Papillomavirus (HPV) vaccination campaign launched on February 28 for 14-year-old girls.

From plagiarism to proxy exams: Galgotias and systemic failure in education

By Sandeep Pandey*   Shock is being expressed at Galgotias University being found presenting a Chinese-made robotic dog and a South Korean-made soccer-playing drone as its own creations at the recently held India AI Impact Summit 2026, a global event in New Delhi. Earlier, a UGC-listed journal had published a paper from the university titled “Corona Virus Killed by Sound Vibrations Produced by Thali or Ghanti: A Potential Hypothesis,” which became the subject of widespread ridicule. Following the robotic dog controversy coming to light, the university has withdrawn the paper. These incidents are symptoms of deeper problems afflicting the Indian education system in general. Galgotias merely bit off more than it could chew.

Development vs community: New coal politics and old conflicts in Madhya Pradesh

By Deepmala Patel*  The Singrauli region of Madhya Pradesh, often described as “India’s energy capital,” has for decades been a hub of coal mining and thermal power generation. Today, the Dhirouli coal mine project in this district has triggered widespread protests among local communities. In recent years, the project has generated intense controversy, public opposition, and significant legal and social questions. This is not merely a dispute over one mine; it raises a larger question—who pays the price for energy development? Large corporate beneficiaries or the survival of local communities?

The new anti-national certificate: If Arundhati Roy is the benchmark, count me in

By Dr. Mansee Bal Bhargava*   Dear MANIT Alumni Network Committee, “Are you anti-national?” I encountered this fascinating—some may say intimidating—question from an elderly woman I barely know, an alumna of Maulana Azad College of Technology (MACT, now Maulana Azad National Institute of Technology - MANIT), Bhopal, and apparently one of the founders of the MACT (now MANIT) Alumni Network. The authority with which she posed the question was striking. “How much anti-national are you? What have you done for the Alumni Network Committee to identify you as anti-national?” When I asked what “anti-national” meant to her and who was busy certifying me as such, the response came in counter-questions.

Minority concerns mount: RTI reveals govt funded Delhi religious meet in December

By Syed Ali Mujtaba*  Indian Muslims have expressed deep concern over what they describe as rising hate speech and hostility against their community under the BJP-led government in India. A recent flashpoint was the event organised by Sanatan Sanstha titled “Sanatan Rashtra Shankhnad Mahotsav” in New Delhi on 13–14 December 2025.

From neglect to progress: The story of Ranavara’s community-led development

By Bharat Dogra   Visitors to Ranavara, a remote village in Kherwara block of Udaipur district, are often surprised by its multi-dimensional progress. The village today is known for its impressive school building, regenerated pastures, expanded tree cover, and extensive water conservation and supply works. These achievements are the outcome of sustained community efforts over several years, demonstrating how small, consistent initiatives can lead to significant change.

The ultimate all-time ODI XI: A personal selection of icons across eras

By Harsh Thakor* This is my all-time best XI chosen for ODI (One Day International) cricket:  1. Adam Gilchrist (W) – The absolute master blaster who could create the impact of exploding gunpowder with his electrifying strokeplay. No batsman was more intimidating in his era. Often his knocks decided the fate of games as though the result were premeditated. He escalated batting strike rates to surreal realms.