India’s Economic Environment Fosters Private Investments: CII Survey

By: Admin
January 21, 2025
Categories: India’s Economy | News
Read Time: 4 Min

India’s economic environment is proving highly conducive to private investments, with the nation standing out as a “bright spot” amidst global challenges, according to an interim survey by the Confederation of Indian Industry (CII).

Survey Highlights

Broad Participation

The ongoing pan-India survey targets 500 firms across all sizes—Large, Medium, and Small. Interim results, based on responses from 300 firms, reveal encouraging trends across sectors.

Employment Growth

A majority of firms are optimistic about employment growth:

  • 97% of surveyed firms plan to increase employment in 2024-25 and 2025-26.
  • 79% of respondents have added employees over the past three years.
Projected employment growth:
  • Direct employment: A 15-22% increase is expected in both manufacturing and services.
  • Indirect employment: A 14% increase is anticipated in both sectors.

Private Investment Confidence

Private sector growth also reflects robust confidence in the economy:

  • 75% of respondents view the current economic environment as favorable for private investments.
  • 70% of firms plan to invest in FY26, highlighting a promising future for private sector contributions.

Wages and Skill Gap

Wage growth and the demand for skilled professionals are evident trends:

  • 40-45% of firms reported wage increases of 10-20% for senior management, managerial roles, and regular workers in FY24 and FY25.
  • Despite this, filling senior management vacancies takes 1 to 6 months, underscoring the need for more skilled staff at higher levels.

Director General’s Statement

Amid global challenges such as disrupted supply chains and geopolitical uncertainties, India’s sound economic policies—particularly the emphasis on public capex-led growth—have enabled the country to emerge as a leader in economic revival.

“With two critical drivers of growth – private investments and employment – showing positive trends, we expect overall growth to remain at 6.4-6.7% in FY25 and rise to 7% in FY26,” said the Director General of CII.

Promising Economic Trends

The survey’s interim findings align with other economic indicators that underscore:

  • Rising confidence in India’s economic stability.
  • Growth in personal consumption, driven by increasing wages.
  • A strong outlook for both manufacturing and services sectors.

As the final survey results are expected by early February, these promising trends reinforce India’s potential as a global economic leader.

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