Economy looking up in Q2 with rising consumer confidence: Assocham
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Hyderabad There are signs of improved consumer confidence in several key sectors of the economy, including services such as hospitality construction and renovation activities have been on an upswing for the past few months leading to return of migrant workers, an Assocham statement has said.
"Our feedback from member companies, including SMEs points towards steady growth in the economic activities with notable gains visible in retail trading, malls, food business and inter-state travel. With most of the States allowing entry of fully vaccinated people without RTPCR tests, the tourist activities have picked up in Himachal Pradesh, Uttarakhand, Rajasthan and Goa. After a washout of the winter tourist season in Rajasthan and Goa, we expect the ensuing winter to turn for better," the note added.
The Indian economy should close the financial year 2021-22 with a double-digit growth, sustaining the catch-up mode. The bounce back as witnessed during the first quarter of the current fiscal should consolidate into a sustainable trend.
Deepak Sood, Assocham Secretary General said, "Consumer demand is visible and turning into business volumes. This would be reflected in the second quarter results of companies. We should see definite improvement in industries such as paints, consumer durables, passenger vehicles and engineering goods."
As the governments of Kerala and Maharashtra are making coordinated efforts to bring the Covid 19 incidence down with a multi-pronged strategy, the overall situation with regard to the pandemic should ease further.
"While the governments, trade and industry are in a far better position to manage and live with the health challenges, further decline in the number of cases would add to the business confidence," Sood added.
On the exports front, a positive outlook was seen in the current financial year. Exports to Europe, the US and several Asian destinations would definitely look up. Prospects for export of metal and other engineering goods, textiles, chemicals and agricultural products appear bright.
