52% of Indian businesses report positive outlook amidst economic flux

17 Jul '23

2 min read

Pic: Shutterstock/Emre Yen

Insights

Fifty-two per cent of Indian businesses reported a positive outlook, as per a survey by VDMA India.
Despite global economic challenges, the Indian economy remains resilient, with 57 per cent of industries planning to hire new staff over the next six months.
A large increase in orders from outside India is anticipated in the next three months.

Around 52 per cent of Indian businesses reported a good business situation, while 6 per cent still assess the current situation as bad, as per a survey by VDMA India. Those that reported their business situation as satisfactory accounted for 42 per cent. Nevertheless, the current sentiment is consistent compared to the sentiment in Autumn 2022.

Despite the unprecedented circumstances, 57 per cent of the industry plans to hire new employees over the next six months. Another 42 per cent plan to hold on to their current workforce. Only 1 per cent plan to reduce employment, which is consistent with the Human Resource scale of Autumn 2022, according to the 12th VDMA Business Climate Survey (BCS) by VDMA India.

Around 4 per cent of the participants reported a bad business situation while the majority of 42 per cent stated that their business situation was satisfactory, as per the last survey.

The 12th edition of the VDMA BCS was conducted in the month of April 2023. More than 100 participants across all sectors of the mechanical engineering industry shared their evaluations regarding their company’s business and the situation of their most important customer industries.

The Indian economy has been resilient and shown a steady growth in the face of a global economic slowdown that has affected business all across the world. As the global economy slows down due to factors such as the conflict in Ukraine, supply chain disruptions, and elevated inflation, India has emerged stronger from the pandemic than anticipated. It can be inferred that India is poised to be the fastest growing major economy as 64 per cent of the participants are expecting an improvement in business situation.

According to the participant companies, the main hindrances faced by them in the Spring Survey are delay in delivery from the head office in Germany. Some of the other points from the Autumn Survey which still exist are rise in price of raw materials and shortage of raw materials that continue to pose a challenge.

Although participants reported that the current stock of orders are lower than previous surveys, they expect a sharp increase in incoming orders over the next three months from outside India and in total.

VDMA India conducts the VDMA BCS twice every year—in spring and again in autumn.

ALCHEMPro News Desk (NB)

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