Also, given the slew of measures undertaken in about past two years to kick start investments, the respondents were asked to indicate if they have witnessed any improvement in investment activity in and around their area of operation - and a majority of them said that they are yet to see investment fructifying. Amidst those who indicated that investments are taking place reported activity mostly in infrastructure projects including roads and highways, railways, renewable energy and defence.

With regard to sales prospects, respondents anticipated an improvement in the performance. About 58% of the participating companies said that they foresee higher sales over the coming six months. In the previous survey, 48% companies had reported the same. The anticipated pickup in sales despite investment intentions remaining subdued indicates companies looking at rolling out unutilized capacity. About 54% of the participants in the current survey reported a capacity utilization of more than 75%, in the last round the corresponding figure was 30%.

Further, 32% of respondents in the latest round reported that they would consider hiring more people in the coming six months; the corresponding number in the last round was 23%. However, still a majority 61% of the participants did not foresee any fresh hiring over the near term.

A marginal improvement was noted in the proportion of respondents expecting higher exports over the near term. However, the global economic situation remains fragile and any firm recovery remains elusive. Thus external situation will continue to pose a challenge over the near term and would take some more time to strengthen.
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