Accepting the impact of increasing globalisation on the Indian economy, India Inc has shown a distinct note of export optimism but feels equally threatened by imports.According to Ficci’s business confidence survey for the third quarter of the current fiscal, 53 per cent of the respondents expect higher to much higher exports in the coming six months. At the same time, more respondents feel threatened by increasing imports. While the proportion was 14 per cent in the last survey, this time it has gone upto 23 per cent.But India Inc, is still learning to accept the reality. While briefing the newspersons about the survey findings, Ficci secretary general Amit Mitra said that “the prospect of a further reduction in import duties on raw material and capital goods in the forthcoming budget has elicited a welcome response as 45 per cent feel that the impact of this reduction would be positive”.However, for the third consecutive quarter, weak demand has emerged as the most pressing problem faced by the industry with 61 per cent of the respondents expressing concern over languishing market conditions, Mitra noted. Hence, Ficci is also hoping for some measures to boost demand in the coming budget for 2003-04. Complaining about excess capacity reflecting the weak market conditions thus holding fresh investments, only 26 per cent said that they planned higher to much higher investments in the coming six months while a majority of 56 per cent plans to hold on to their existing investment levels.According to the survey the Indian industry seems to be cautious in the run-up to the budget about the implementation of the Kelkar committee recommendations with 58 per cent of the companies surveyed viewing that a phased reduction of exemptions and appropriate lowering of tax rates would be the most appropriate step.
