By ITTeam India’s current economic environment is proving highly conducive to private investments, with the nation emerging as a “bright spot” amid global economic challenges, according to a recent survey by the Confederation of Indian Industry (CII).
Positive Investment Sentiment
The pan-India survey, which is ongoing and aims to encompass 500 firms by early February, has so far gathered responses from 300 companies across various sizes—large, medium, and small. Preliminary findings reveal that 75% of these firms perceive the current economic climate as favorable for private investments. Notably, 70% of the respondents indicated plans to invest in the fiscal year 2025-26, suggesting an impending uptick in private investment over the next few quarters.
Chandrajit Banerjee, Director General of CII, stated, “Given that 70% of the firms surveyed said that they would invest in FY’26, an uptick in private investments might be on the cards over the next few quarters.”
Employment Growth Projections
The survey also highlights a positive trend in employment, with approximately 97% of the sampled firms planning to increase their workforce in both 2024-25 and 2025-26. Over the past three years, 79% of the respondents reported adding more personnel, reflecting a robust job market.
In terms of direct employment from planned investments in the coming year, the manufacturing sector anticipates an average increase of 15%, while the services sector expects a 22% rise. Indirect employment is also projected to grow, with manufacturing and services firms foreseeing a 14% increase over current levels.
Economic Resilience Amid Global Challenges
Despite geopolitical tensions and disruptions in global supply chains, India has maintained economic stability. The government’s emphasis on public capital expenditure-led growth has been instrumental in this resilience. CII noted, “The sound economic policies initiated by the Government helped revive the economy with emphasis on public capex-led growth.”
Growth Projections
With positive indicators in private investments and employment, CII projects that India’s overall economic growth is likely to remain stable between 6.4% and 6.7% for the current year, with expectations to reach 7% in the fiscal year 2025-26.
Wage Growth Trends
The survey also sheds light on wage growth, an essential factor influencing personal consumption. Between 40% to 45% of the firms reported an increase in average wages across senior management, managerial/supervisory roles, and regular workers, with growth rates ranging from 10% to 20% in the fiscal year 2024-25. A similar trend was observed in the previous fiscal year, indicating sustained wage growth.
Conclusion
The CII survey underscores a burgeoning confidence among Indian businesses, driven by a supportive economic environment and proactive government policies. The anticipated surge in private investments and employment growth not only signals a robust economic trajectory but also positions India favorably on the global economic stage. As the nation navigates through global uncertainties, these developments reflect a resilient and dynamic economic landscape, fostering optimism for sustained growth in the coming years.