54% of firms report ‘less than normal’ or lower sales, subdued profit margins: IIM-A survey

By A Representative

The high profile Business Inflation Expectations Survey (BIES) of the Indian Institute of Management-Ahmdabad (IIM-A) has revealed that About 54% of the firms are still reporting ‘somewhat less than normal’ or lower sales, even as pointing out that overall, the profit margins expectations have remained subdued.

Based on responses of around 1,100 companies, the BIES provides 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.

Questions asked include year-ahead cost expectations and the factors influencing price changes, such as cost, profit, sales levels, etc. "The survey is 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", states an IIM-A note.

It claims, "One major advantage of BIES is that one can get a probabilistic assessment of inflation expectations and thus get a measure of uncertainty. It also provides an indirect assessment of overall demand condition of the economy. Results of this survey are, therefore, useful in understanding the inflation expectations of businesses and complement other macro data required for policy making."

Conducted at the Misra Centre for Financial Markets and Economy, IIM-A,

the survey finds that, overall, "the cost perceptions data in May 2024 indicate moderation in cost pressures, although the percentage of firms perceiving very significant cost increase (over 10%) in May 2024 has increased marginally to 14%, from around 13% reported in April 2024."

IIM-A note says, "The percentage of firms reporting moderate to significant cost increase (3.1% to 10.0%) has declined significantly to 41% in May 2024, from 47% reported in April 2024."

It points out, "The sales expectations scenario during February-May 2024 remained similar. Only around 18-19% of the firms are reporting ‘somewhat greater than normal’ sales. About 54% of the firms are still reporting ‘somewhat less than normal’ or lower sales during March-May 2024."

Normal means as compared to the average level obtained in the preceding 3 years, excluding the Covid-19 period.

The survey also reveals that "around 41% of the firms in May 2024 are reporting profit margins to be ‘about normal’ or greater – down from 48% reported in April 2024", underlining, "Overall, the profit margins expectations remained subdued in May 2024."

The survey also finds that one year ahead business inflation expectation has "declined by 25 basis points to 4.59% in May 2024 from 4.84% reported in April 2024. Firms’ average inflation expectation during the past 12 months works out to be 4.35%."

Comments

Wave of disappearances sparks human rights fears for activists in Delhi

By Harsh Thakor* A philosophy student from Zakir Hussain College, Delhi University, and an activist associated with Nazariya magazine, Rudra, has been reported missing since the morning of July 19, 2025. This disappearance adds to a growing concern among human rights advocates regarding the escalating number of detentions and disappearances of activists in Delhi.

How community leaders overcome obstacles to protect forests and pastures in remote villages

By Bharat Dogra Dheera Ram Kapaya grew up in such poverty that, unable to attend school himself, he would carry another boy’s heavy school bag for five kilometers just to get a scoop of daliya (porridge). When he was finally able to attend school, he had to leave after class five to join other adolescent workers. However, as soon as opportunities arose, he involved himself in community efforts—promoting forest protection, adult literacy, and other constructive initiatives. His hidden talent for writing emerged during this time, and he became known for the songs and street play scripts he created to promote forest conservation, discourage child marriages, and support other social reforms.

‘Act of war on agriculture’: Aruna Rodrigues slams GM crop expansion and regulatory apathy

By Rosamma Thomas* Expressing appreciation to the Union Agriculture Minister for inviting suggestions from farmers and concerned citizens on the sharp decline in cotton crop productivity, Aruna Rodrigues—lead petitioner in the Supreme Court case ongoing since 2005 that seeks a moratorium on genetically modified (GM) crops—wrote to Union Minister Shivraj Singh Chouhan on July 14, 2025, stating that conflicts of interest have infiltrated India’s regulatory system like a spreading cancer, including within the Indian Council for Agricultural Research (ICAR).

The GMO illusion: Three decades of hype, harm, and false hope

By Sridhar Radhakrishnan Three decades of hype, billions of dollars spent, and still no miracle crop. It's time to abandon the GMO biotech fairy tale and return to the soil, the seed, and the farmer. “Trust us,” they said. “GMOs will feed the world.” Picture a world where there is plenty of food, no hunger, fields grow without chemical pesticides, children are saved from malnutrition, and people live healthily.

Sandra Gonzalez Sanabria: An inspiring life from Colombia’s Amazonian valley

By Vidya Bhushan Rawat* In the village of Héctor Ramírez, known as Agua Bonita, in La Montañita, Caquetá, Colombia, a vision of peace and renewal is unfolding. In the pre-2016 period, this would have been nearly impossible for outsiders to visit, as it was the epicenter of violent resistance against state oppression. However, after the Peace Accord was signed between the Colombian government and former revolutionaries—marking the end of a 70-year insurgency that claimed over 400,000 lives until 2025, including civilians, rebel fighters, and security personnel—things began to change. Visiting Agua Bonita during the Global Land Forum in Bogotá revealed a village of hope and resilience. Former FARC revolutionaries have settled here and transformed the village into a center of peace and aspiration.

Overriding India's constitutional sovereignty? Citizens urge PM to reject WHO IHR amendments

By A Representative A group of concerned Indian citizens, including medical professionals and activists, has sent an urgent appeal to Prime Minister Narendra Modi, urging him to reject proposed amendments to the International Health Regulations (IHR) before the ratification deadline of July 19, 2025.

Indigenous Karen activist calls for global solidarity amid continued struggles in Burma

By A Representative At the International Festival for People’s Rights and Struggles (IFPRS), Naw Paw Pree, an Indigenous Karen activist from the Karen Human Rights Group (KHRG), shared her experiences of oppression, resilience, and hope. Organized with the support of the International Indigenous Peoples Movement for Self-Determination and Liberation (IPMSDL), the event brought together Indigenous and marginalized communities from across the globe, offering a rare safe space for shared learning, solidarity, and expression.

Activists allege abduction and torture by Delhi Police Special Cell in missing person probe

By A Representative A press statement released today by the Campaign Against State Repression (CASR) alleges that several student and social activists have been abducted, illegally detained, and subjected to torture by the Delhi Police Special Cell. The CASR claims these actions are linked to an investigation into the disappearance of Vallika Varshri, an editorial team member of 'Nazariya' magazine.

India’s zero-emission, eco-friendly energy strategies have a long way to go, despite impressive progress

By N.S. Venkataraman* The recent report released by OPEC’s World Oil Outlook 2025 has predicted that by the year 2050, crude oil would replace coal as India’s key energy source. Clearly, OPEC expects that India’s dependence on fossil fuels for energy will continue to remain high in one form or another.

Search This Blog