In New Delhi, India, the economic outlook for the second quarter of the financial year 2025 looks promising, according to a survey conducted by the Confederation of Indian Industry (CII). The industry is expecting an increase in export orders and job opportunities, leading to enhanced employment sentiment in the country. Approximately 31% of the respondents expressed optimism about the rise in export orders due to a slight improvement in the external scenario.
On the imports side, a significant portion of respondents expects their orders to remain the same in Q2, while 21% anticipate an increase in orders during the same quarter. The survey also sheds light on the employment scenario and business prospects in Indian companies, with nearly half of the respondents expecting an improvement in hiring during the second quarter of the fiscal year.
Factors such as an improvement in consumption, steady progress in monsoon, continued reforms, and private investment are cited as key drivers of growth in the current financial year. While 41% of respondents believe the employment situation will remain unchanged, 49% anticipate an improvement within their companies during the second quarter of the financial year.
However, the survey also highlights some lingering concerns among businesses, including protracted geopolitical tensions, a spike in global commodity prices, and slowing external demand. About 24% of businesses identified protracted geopolitical tensions as their top concern for the next six months, with 18% citing the spike in global commodity prices and 17% expressing worries about slowing external demand.
In total, 16% of businesses identified skewed consumption demand as a major risk to their business confidence in the next six months. The survey, which was the 128th round of the CII Business Outlook Survey, was conducted in September 2024 and included input from over 200 firms of varying sizes across all industry sectors and regions.
Overall, the survey paints a positive picture of India’s economic outlook for the second quarter of the financial year 2025, with expectations of increased export orders, improved employment sentiment, and growth across various sectors. Despite some lingering concerns about geopolitical tensions, commodity prices, and external demand, the industry seems poised for growth and development in the coming months. With factors like reforms, private investment, and consumption driving growth, the outlook for the Indian economy appears promising in the months ahead.
