Business leaders anticipate strong economic growth for the next fiscal (FY25), with about half of the respondents expressing optimism about the country posting 6-6.5-per cent growth.

Sixty-six per cent growth is anticipated in the consumer and retail sector.

Changing consumer preferences and strong demand in tier-II and tier-III cities are other factors aiding this outlook.

About 13 per cent businesses hold a negative outlook on the upcoming July budget, indicating a significant increase from 1 per cent reported in 2023. More than 70 per cent of the large businesses express optimism, while only 45 per cent share the same sentiment. The higher negative outlook is due to escalating inflation concerns and anticipated political transition.

Sixty-four per cent of respondents advocate research and development (R&D) support for domestic companies, while 57 per cent underscore the significance of an effective intellectual property rights framework to foster industry growth.

Almost all businesses expect artificial intelligence (AI) to evolve and about 70 per cent of consumer and retail businesses are urging government support to regulate AI use, stressing strict adherence to ethical practices in data and methods.

The respondents also expect the government to prioritise the implementation of Industry 4.0 technologies along with continuous efforts in more skill development initiatives, particularly in upskilling and nurturing talent in tier-II and tier-III cities.

The survey also revealed global headwinds and continued cost escalation concerns, which the respondents felt need strategic measures. Business leaders stress the importance of targeted skill development.

Many respondents felt that despite effective execution, the production-linked incentive scheme 2.0 needs a better approach.

Fibre2Fashion News Desk (DS)