Consumer confidence showing signs of pick up in Q2: ASSOCHAM
Consumer confidence is improving in several key sectors of the economy ahead of the festive season, including contact services such as hospitality, while construction and renovation activities have been picking up in recent months, resulting in the return of migrant workers for gainful employment, according to an ASSOCHAM assessment.
"Our member companies' input, particularly those in SMEs, indicates a continuous increase in economic activity, with noteworthy rises in retail commerce, malls, food business, and interstate travel. With the majority of governments permitting fully vaccinated individuals to enter without RTPCR tests for Covid-19, tourist activity has increased in states like as Himachal Pradesh, Uttarakhand, Rajasthan, and Goa. Hopefully, the Covid situation will stabilise with a significant increase in daily vaccination, resulting in an increase in tourist activity in places like Rajasthan and Goa. Following a washout of the winter tourism season in Rajasthan and Goa, we anticipate that the following winter would be more pleasant "as stated in the ASSOCHAM assessment note.
Though starting from a low foundation, the Indian economy is expected to rise by double digits in fiscal year 2021-22, hence maintaining the catch-up mode. The rebound shown in the first quarter of the current fiscal year could solidify into a durable trend in the coming quarters.
Mr Deepak Sood, Secretary General of ASSOCHAM, stated that consumer demand is obvious and translating into business volumes. "This would be reflected in corporate India's second-quarter performance. In industries such as paints, consumer durables, passenger vehicles, and technical items, we should see significant progress."
As the Union Government, in collaboration with the state governments of Kerala and Maharashtra, is implementing a multi-pronged plan to bring the Covid 19 incidence down, the overall scenario regarding the pandemic should improve further. "While governments, business, and industry are significantly better equipped to manage and cope with health concerns, further declines in the number of instances would bolster corporate confidence. However, Covid Appropriate Behaviour (CAB) would remain a critical tool in the fight against the epidemic. We as ASSOCHAM have been reaching out to our members on a continual basis to encourage them to keep a constant monitor on their workplaces with CAB "as Mr Sood stated.
Additionally, exporters expressed a good outlook for the current fiscal year. Exports to Europe, the United States, and some Asian markets would very certainly increase. Export prospects for metal and other engineering goods, textiles, chemicals, and agricultural products appear to be favourable. "While there is a strong demand in industrialised countries, the topic of worry is the rising expense of cargo transportation by ship liners. Hopefully, this will play out as supply constraints are alleviated."