Indian economy is expected to fare better in the second half of the current fiscal backed by uptick in sales and improved capacity utilisation, though fresh investments and new jobs creation may be a concern going forward, according to an Assocham report.
Besides, an increased spending on infrastructure development, largely by the Government, is seen as the most important driver for a turnaround in the economic outlook for the period between October and March this fiscal, it added. Over 66 per cent respondents polled in the Assocham Bizcon Survey expected improved sales and capacity utilisation during the second half of the fiscal, but remained uncertain on fresh investments coming in. However, in the short horizon, the survey indicates that there will not be any change in the employment scenario in the industry. As majority (55.6 per cent) of respondents believe that employment condition will not improve in the coming days. Besides, 38.9 per cent of the respondents feel that their profits may not change in the short term, October to December.
The second best driver for the optimistic outlook are effective policy reforms followed by a stable foreign exchange rate of the Indian currency despite global head winds like uncertainty on account of the Federal Reserve's next policy move and the most bitterly fought US Presidential elections.