Consumer confidence improves in the second quarter: Assocham


New Delhi: Consumer confidence improves ahead of key festival season, when Indian households increase their purchases.

Industry body Assocham said comments from its member companies, including small and medium-sized businesses, indicate improving consumer confidence in several key sectors of the economy. This is true for contact services such as reception, while construction and renovation activities have resumed in recent months, leading to the return of migrant workers for paid deployment.

Assocham has over 400 chambers and trade and service associations including over 4.5 lakh members across India.

The rapid pace of vaccination and the decline in covid-19 infections have resulted in increased economic activity, Assocham said in its assessment of member companies.

“Our feedback from our member companies, including those from SMEs, indicates a steady upturn in economic activity with notable gains visible in retail, shopping malls, food trade and interstate travel. With most states allowing entry of fully vaccinated people without RTPCR tests for Covid-19, tourism activities have resumed in states like Himachal Pradesh, Uttarakhand, Rajasthan and Goa, ”Assocham said in his report. evaluation score.

He expects India’s economy to experience double-digit growth by the end of the current fiscal year, albeit on a weak basis.

The rebound, as seen in the first quarter of the current fiscal year, is expected to consolidate into a sustainable trend going forward, he said.

Assocham general secretary Deepak Sood said consumer demand was visible and was turning into business volumes. “This would be reflected in the second quarter results of Indian companies. We should see a marked improvement in sectors like paints, durable consumer goods, passenger vehicles and engineered products,” he said. declared.

Domestic demand aside, Assocham said comments from exporters also showed a “positive outlook” for the current fiscal year.

As demand gradually improves, rising global freight costs remain a concern.

“Exports to Europe, the United States and several Asian destinations would certainly increase. The outlook for exports of metals and other engineering products, textiles, chemicals and agricultural products looks good. Although there is good demand in developed countries, the issue of concern is the rising cost of transporting goods by ocean liners. Hopefully this should happen as the supply bottlenecks are eased, ”he said.

Meanwhile, as the country enters the holiday season, coordinated efforts by states to control the spread of the virus, a faster vaccination campaign and ensuring appropriate covid behavior will be key.

“While governments, commerce and industry are in a much better position to manage and live with health problems, a further drop in the number of cases would boost business confidence.

Assocham has reached out to its members to maintain constant vigilance in their workplace regarding appropriate covid behaviors, Sood said.

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