New Delhi: Majority of CEOs polled by Ficci sense an improvement in the economic situation on the back of measures announced by the new government.
The survey, which drew 78 CEOs, showed that steps taken by the government after assuming office last year are now starting to yield results on the ground.
It may however, be added that while a turnaround in the economy is visible, the pace of change is slow and there is an imperative need to continue with the reforms process so that the improving economic situation gathers strength translating into a sustainable increase in consumption and investment demand.
In this context, the forthcoming Union Budget 2015-16 is being seen with a lot of expectations and CEOs expect the government to lay out more measures to boost economic growth.
According to the survey, nearly 63 percent of the CEOs feel that the current overall economic situation has seen a marginal improvement vis-a-vis the last six months.
Another 32 percent of the CEOs feel that there has been a substantial improvement in the economic situation over the last six months, the survey said.
Further, when asked about their outlook with regard to business and investments over the next six months, nearly 60 percent of the CEOs reported that they expect a moderate improvement while another 32 percent of the CEOs said that they foresee a substantial improvement in the same.
These findings are an indication that the building blocks for growth being put in place by the government in terms of broad policy and procedural changes are beginning to take effect, the chamber said.
However, nearly 47 percent of the CEOs still maintained the view that banks need to do more to support productive investments and growth.
Nearly 75 percent of the participants in the FICCI survey reported that cost of capital should be in the range of 8 to 10 percent for them to competitively drive investments.
