CII’s 116th edition of quarterly Business Outlook Survey indicates a fillip in business sentiment during the Jul-Sep 2021 quarter, as the CII Business Confidence Index (BCI) has recovered to the level of 62.6, from 50.4 recorded in the previous quarter.
The latest survey results are based on responses from about 170 firms, across all industry sectors, including micro, small, medium and large enterprises and covering all regions of the country.
As per the findings of the survey, expectations for the Jul-Sep quarter have improved as nearly two-thirds of the respondents anticipate an increase in sales (64 percent) and new orders (65 percent).
Further, the profit outlook for this quarter has strengthened as about half of the respondents (47 percent) foresee an increase in profits during the quarter, despite a majority of them indicating elevated input costs.
The recovery in sentiment for the latest quarter was buttressed by the milestones achieved in the national vaccination program, which provided some succour to businesses, even though concerns around the third wave lingered. Aided by the achievements on the vaccination front, Indian businesses steadily progressed towards resuming full-scale operations in the Jul-Sep quarter, with nearly two thirds of the respondents (63 percent) reporting that 75%-100% of their employees have been fully vaccinated against COVID.
Another positive outcome of the year and a half long battle, of Indian businesses, against COVID has been in terms of business transformation. The survey results reveal that businesses have adapted to the challenges posed by the pandemic by quickly adopting digital platforms for several business operations.