CHANDIGARH: High interest rates and raw material cost have been two main concerns of the industry in northern region, says a CII survey.
In its latest business outlook survey, it was further revealed that stagnancy in reforms is the third most important concern along while currency risks and inadequate skilled labour.
On the inflation front, expectations of easing down are low, with 34 per cent of the respondents expecting inflation to surpass the 9 per cent mark this year, as against 29 per cent in 2011-12. Thus, expectations of high inflation continue to persist in the economy which is a worrying trend, it said.
The survey is based on responses from 54 organisations across eight northern states including Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh and Uttarakhand and the Union Territory of Chandigarh.
However, the outlook on business conditions for the current quarter (April-June) shows signs of moderate recovery.
"The expectation for the current quarter is much better for the Indian economy, respective sectors and own companies, with a greater percentage of respondents rating the quarter as 'better', as compared to the previous quarter (January-March)," it said.
Source: PTI
