Manufacturing, exports may growth in 2013: survey
After a subdued Diwali this financial year, India Inc will certainly see a sparkle in the festive season of 2013-14 on the back of the manufacturing and exports returning to growth, an ASSOCHAM confidence Index showed.
A vast majority of the 171 chief executives covered under the confidence from different sectors feel that it would take at least another six months for several segments of the industry to 'repair'and 'deleverage' their balance-sheets before they march further on the growth path.
The confidence index was measured in the two weeks ending November seven across different verticals.
Segments such as banking, power, infrastructure, civil aviation and real estate are particularly in problems at present and most of the companies in these sectors are resorting to various means to get rid of excessive debts.
Banks, in particular, have seen a big rise in their non-performing assets while the real estate firms are finding it difficult to liquidate their inventory, where large money is blocked.
On top of it, the promoters are not getting support from the stock market either. While between the Mahurat trading of last Diwali and the current festivities, the Sensex has gone up by about 1,000-1,500 odd points, the sentiment remains muted despite some pick-up in the last few months driven largely by the recent initiatives of the Finance Ministry.
However, in the horizon of nine to 12 months, the situation is expected to improve as the CEO respondents see inflation coming under large control, interest rates softening and the global environment improving.