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Businesses to face greater challenges over next 6-12 months from govt policies in comparison to Covid: Survey

On Tuesday, October 05, 2021 at 04:15 IST

A survey conducted by the Bombay Chamber of Commerce and Industry (BCCI) finds that businesses in India could face greater challenges over the next 6-12 months from government policies rather than the impact of coronavirus (Covid).

Challenges are likely to occur on account of high energy prices, demand conditions, changes in government policies and delays in tax refunds.
With an aim to highlight ways in which the coronavirus (Covid-19) pandemic is changing business behavior, over 121 BCCI members spread across 11 sectors too part in a survey which revelated that unfavourable government policies might impact business in India more than the two pandemic waves which crippled the nation.

Supportive regulatory measures and providing a healthy business environment are critical for fuelling India’s economic growth. The survey identified the need of several conventional and unconventional measures to ensure successful execution of policies, support sustainable demand and address liquidity issues.

“We hope, these findings will help in creating an impactful discussion on converting unorganized players into organized ones, to facilitate ease of doing business in India and create an enabling ecosystem,” said Anjali Bansal, President, BCCI.

Over 83 per cent of the respondents felt the issue of competitiveness with respect to the export market is one of the most important business challenges at present and 36 per cent of respondents felt that cheaper imports were acting as a hindrance to business. The overall level of capacity utilization in business at this moment is between 60-70 per cent which was just 60 per cent last year.

In the survey, 49 per cent of the respondent’s confidence level dropped after the second wave of the virus and 41 per cent of them believe it will take around two quarters for consumption to revive.

When asked about the most effective measure that the government should take to revive demand in the economy, respondents felt the need of direct money transfer to the middle and the lower income group people, was necessary.


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