A recent survey conducted by the Confederation of Indian Industry (CII) reveals a positive outlook for the Indian economy, with 75% of companies believing the current environment is favorable for private investments. This optimistic sentiment persists despite ongoing challenges, such as geopolitical uncertainties and disrupted supply chains. According to the survey, 70% of firms plan to invest in FY26, signaling a potential rise in private sector investments in the near future.
Chandrajit Banerjee, Director General of CII, stated, "Given that 70% of the firms surveyed said they would invest in FY'26, an uptick in private investments might be on the cards over the next few quarters."
The survey, which focuses on private-sector investments, employment, and wage trends, also highlights the growing importance of employment generation in policy discussions. An impressive 97% of firms expect to increase employment in FY25 and FY26. Over the past three years, 79% of respondents reported expanding their workforce.
In terms of employment growth, 42% to 46% of firms expect a 10% to 20% increase in jobs, while 31% to 36% foresee a rise of up to 10%. The manufacturing and services sectors are expected to experience direct employment growth of 15% to 22% over the next year, with indirect employment projected to grow by about 14%.
However, the survey also highlighted challenges in filling senior management positions, which typically take one to six months to fill, suggesting a need for more skilled talent at higher levels.
Banerjee emphasized, "With the two critical drivers of growth—private investments and employment—looking positive, we feel confident that the overall growth is likely to remain around a stable 6.4-6.7% this year and is likely to be 7.0% in FY26."
The survey also noted a positive trend in wage growth, with 40% to 45% of firms reporting average wage increases of 10% to 20% for senior management, supervisory roles, and regular workers in FY24. Similar trends are expected for FY25, with the rise in wages likely to boost personal consumption, further supporting economic growth.
The pan-India survey, conducted over the last 30 days, involved 300 firms of various sizes, from large to small. It is part of a larger initiative to assess private-sector investments, employment, and wage growth, with plans to cover a total of 500 firms by early February. Despite global challenges, India remains a bright spot, bolstered by sound government policies focused on public capex-led growth.
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