Indian economy may close FY 2021-22 with double-digit growth: ASSOCHAM

Ahead of the festive season, there are signs of improved consumer confidence in several key sectors of the economy. The feedback from member companies, including those in the SMEs, points towards a steady pick-up in economic activities with notable gains visible in retail trading and malls among other sectors, an ASSOCHAM assessment has noted.

The feedback with the exporters also showed a positive outlook for the current financial year. Exports to Europe, the US and several Asian destinations would look up. Prospects for exports of textiles and chemicals among other things appear bright.

While there is a good demand in the developed nations, the issue of concern relates to increasing cost of cargo movement by ship liners. Hopefully, this should play out as the supply bottlenecks are eased, said ASSOCHAM.

Sharing the positive feedback, the ASSOCHAM secretary general, Deepak Sood said, consumer demand is visible and turning into business volumes and this would be reflected in the second quarter results of corporate India.

As the Union government along with the state governments of Kerala and Maharashtra are making coordinated efforts to bring the COVID-19 incidence down with a multi-pronged strategy, the overall situation with regards to the pandemic should further ease up. "While the governments, trade and industry are in a far better position to manage and live with the health challenges, further decline in the number of cases would add to the business confidence. However, COVID Appropriate Behaviour (CAB) would remain one of the most important weapons to defeat the pandemic,” Sood said.

Fibre2Fashion News Desk (KD)