India’s Economic Outlook for Q2 FY 2025
India is looking forward to a promising economic outlook for the second quarter of the financial year 2025. A survey by the Confederation of Indian Industry (CII) reveals that the industry expects an increase in export orders and improved employment sentiment.
Export and Import Expectations
In Q2 FY 2025, 31% of industry respondents are optimistic about increased export orders due to a slight improvement in the external scenario. On the import side, most respondents expect no change, while 21% anticipate an increase in orders.
Employment and Business Prospects
The survey highlights positive responses regarding employment opportunities, with nearly half of the respondents expecting better hiring across various sectors. Factors such as improved consumption, especially in rural areas, steady monsoon progress, ongoing reforms, and new private investments are seen as growth drivers.
Business Concerns
Despite the optimism, some concerns remain. Protracted geopolitical tensions, rising global commodity prices, and slowing external demand are top worries for businesses. About 24% of businesses cite geopolitical tensions as their main concern, 18% are worried about commodity prices, and 17% about external demand. Additionally, 16% of businesses are concerned about skewed consumption demand.
Survey Details
The 128th round of the CII Business Outlook Survey was conducted in September 2024, covering over 200 firms of various sizes across all industry sectors and regions.
Doubts Revealed
Q2 FY 2025 -: Q2 FY 2025 refers to the second quarter of the financial year 2025. In India, the financial year starts in April and ends in March, so Q2 FY 2025 would be from July to September 2024.
CII -: CII stands for the Confederation of Indian Industry. It is an organization in India that works to create a positive business environment and helps industries grow by providing support and conducting surveys.
Export orders -: Export orders are requests from other countries to buy goods or services made in India. When export orders increase, it means more countries want to buy Indian products, which is good for the economy.
Rural demand -: Rural demand refers to the need for goods and services in the countryside or villages of India. When rural demand improves, it means people in these areas are buying more, which helps the economy grow.
Geopolitical tensions -: Geopolitical tensions are conflicts or disagreements between countries that can affect trade and economic relations. These tensions can make it harder for countries to do business with each other.
Global commodity prices -: Global commodity prices are the costs of basic goods like oil, metals, and food that are traded worldwide. Changes in these prices can impact the economy, as they affect the cost of living and production.
