India Inc expects faster recovery after second wave of Covid-19 pandemic
The recovery from the second wave of the pandemic in April-May is expected to be faster compared to the first wave in 2020, according to the Confederation of Indian Industries (CII) CEO’s survey of 119 large companies.
During the second wave, the closures were largely designed to limit social gatherings and the impact on economic activities was limited. This helped to halt the impact of the second wave on economic growth, according to an investigation by the industry lobby group Confederation of Indian Industries (CII).
Around 59% of CEOs surveyed expect the sales recovery to be better than in the first wave for their companies, while 46% of them expressed a similar trend for their respective industry sectors.
The survey indicates that vaccination is the key to mitigate the impact of the second wave on economic activity and boost consumer confidence. “Assessing consumer demand for their industries, 49% of CEOs expect consumer demand to be better in the first half of 2021-2022 compared to the same period in 2019-20. Similarly, 72% of CEOs expect private investments to be better in the first half of the current fiscal year compared to the same period in 2019-2020, ”said an official statement.
He said up to 62% of business executives confirmed that their company was forced to scale back operations during Wave 2. Due to the reduction in operations, 44% and 39% of CEOs expect the decline in revenue growth and net income, respectively, to be more than 10% in the first half of the year. current year compared to the same period in 2019-20.
“The good news that was confirmed by the survey results is that external demand has remained favorable, with 81% of respondents expecting the second wave in India to have no negative impact on exports. of their sector in the first half of the current year than the comparable period of 2019-2020, ”said CII Managing Director Chandrajit Banerjee.
Dynamic external demand is bolstered by a large-scale global recovery and the rapid pace of immunization coverage in major global economies, CII said.