Greater number of firms expect increase in costs, as sales, profits improve: IIM-A survey

By Our Representative
The Indian Institute of Management-Ahmedabad’s (IIM-A’s) Business Inflation Expectations Survey (BIES) has suggested that a greater number of firms are expecting increase in cost pressures. However, according to the survey, the sales and profit expectations of the have improved “significantly.”
BIES claims to provide ways to examine the amount of slack in the economy by polling a panel of business leaders about their cost expectations and the factors influencing price changes, such as profit, sales levels, etc. The survey is claimed 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.

“Results of this Survey are useful in understanding the inflation expectations of businesses and complement other macro data required for policy making”, the survey report, prepared by the Misra Centre for Financial Markets and Economy, IIM-A, based on the responses of around 1000 companies, says.
“The cost perceptions data indicate increase in cost pressures”, the report says, noting, “The percentage of firms perceiving significant cost increase (over 6%) in December 2023 has increased to 33% from around 29% reported during October-November 2023. However, the percentage of firms reporting moderate cost increase (3.1% to 6.0%) has remained around 29% in December 2023.”

The survey further reveals that about 23% of the firms are reporting ‘somewhat greater than normal’ sales in December 2023 -– up from 19% reported in November 2023. “About 57% of the firms are reporting ‘normal’ or greater sales in December 2023 – significantly up from 46% reported in November 2023. 'Normal' means as compared to the average level obtained in the preceding 3 years, excluding the Covid-19 period.”
As for profit margins, the survey states, “Around 48% of the firms in December 2023 are reporting profit margins to be ‘about normal’ or greater – significantly up from 43% reported in November 2023”, noting, “Overall, the profit margins expectations have notably improved.”

Comments

Gujarat's high profile GIFT city 'fails to attract' funds, India's FinTech investment dips

By Rajiv Shah While the Narendra Modi government may have gone out of the way to promote the Gujarat International Finance Tec-City (GIFT City), sought to be developed as India’s formidable financial technology hub off the state capital Gandhinagar, just 20 km from Ahmedabad, a recent report , prepared by Tracxn Technologies suggests that neither of the two cities figure in the list of top FinTech funding receiving centres.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah* The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual.

Why Ramdev, vaccine producing pharma companies and government are all at fault

By Colin Gonsalves* It was perhaps Ramdev’s closeness to government which made him over-confident. According to reports he promoted a cure for Covid, thus directly contravening various provisions of The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954. Persons convicted of such offences may not get away with a mere apology and would suffer imprisonment.

Malayalam movie Aadujeevitham: Unrealistic, disservice to pastoralists

By Rosamma Thomas* The Malayalam movie 'Aadujeevitham' (Goat Life), currently screening in movie theatres in Kerala, has received positive reviews and was featured also on the website of the British Broadcasting Corporation. The story is based on a 2008 novel by Benyamin, and relates the real-life story of a job-seeker from Kerala tricked into working in slave conditions in a goat farm in Saudi Arabia.

Decade long Modi rule 'undermines' people's welfare and democracy

By Ram Puniyani* Modi has many ploys up his sleeves when it comes to propaganda. On one hand he is turning many a pronouncements of Congress in the communal direction, on the other he is claiming that whatever has been achieved during last ten years of his rule is phenomenal, but it is still a ‘trailer’ and the bigger things are in the offing as he claims to be coming to power yet again in 2024. While his admirers are ga ga about his achievements, the truth lies somewhere else.

Belgian report alleges MNC Etex responsible for asbestos pollution in Madhya Pradesh town Kymore: COP's Geneva meet

By Our Representative A comprehensive Belgian report has held MNC Etex , into construction business and one of the richest, responsible for asbestos pollution in Kymore, an industrial town in in Katni district of Madhya Pradesh. The report provides evidence from the ground on how Kymore’s dust even today is “annoying… it creeps into your clothes, you have to cough it”, saying “It can be deadly.”

Plagued by opportunism, adventurism, tailism, Left 'doesn't matter' in India

By Harsh Thakor* 2024 elections are starting when India appears to be on the verge of turning proto-fascist. The Hindutva saffron brigade has penetrated in every sphere of Indian life, every social order, destroying and undermining the very fabric of the Constitution.

Can universal basic income help usher in sustainable egalitarianism in India?

By Prof RR Prasad* The ongoing debate on application of Article 39(b) in the Supreme Court on redistribution of community material resources to subserve common good and for ushering in an egalitarian society has opened new vistas wherein possible available alternative solutions could be explored.

Press freedom? 28 journalists killed since 2014, nine currently in jail

By Kirity Roy* On the eve of the Press Freedom Day on 3rd of May, the Banglar Manabadhikar Suraksha Mancha (MASUM) shared its anxiety with the broader civil society platforms as the situation of freedom of any form of expression became grimmer in India day by day. This day was intended to raise awareness on the importance of freedom of press and to pay tribute to pressmen who lost their lives in the line of duty.

Ahmedabad's Muslim ghetto voters 'denied' right to exercise franchise?

By Tanushree Gangopadhyay* Sections of Gujarat Muslims, with a population of 10 per cent of the State, have been allegedly denied their rights to exercise their franchise in the Juhapura area of Ahmedabad.

Search This Blog