Budget 2015: 'Sustainable turnaround still elusive; time to walk the talk'

NEW DELHI: Ahead of Budget, an industry confidence survey today showed that a sustainable turnaround remains elusive on investments, profits and exports, while another study urged the government to 'walk the talk' and take steps to improve ease of doing business.

The results of Business Confidence Survey, conducted by industry body FICCI, also showed a marginal dip in the proportion of respondents anticipating 'moderately to substantially better' performance over the near-term at economy, industry and company level.

While the situation is certainly better when compared to last year, the change in quarter on quarter numbers are yet to indicate a firm turnaround, FICCI said.

According to Ficci's poll, measures announced by the government over the course of last seven to eight months did have a positive impact on the sentiment of the business community. However, to sustain this buoyancy it will be important that the process of implementation of these reforms continues with momentum.

The survey results come within days of eminent banker Deepak Parekh stating that the industry remains optimistic but impatience has begun creeping in among the industrialists as to why not much has changed on the ground on the ease of doing business front in the last nine months that the new government has been in power.

The FICCI survey also found that the industry is confident about the government pursuing its broad economic agenda to push reforms.

In another survey, consultancy major Grant Thornton said that more than half of the Indian businesses expect radical tax reforms as well as more clarity on certain taxation measures in the Budget.

"There is political stability, markets are at a high, everyone is talking about 'acche din'. The Prime Minister has spoken about 'Make in India', he has stressed on our desire to attract FDI and has reassured global investors a non- adversarial tax environment but India still ranks 142 out of 189 countries in the ease of doing business," Grant Thornton Advisory Director Pallavi Bakhru said.

"Now is the opportunity for the government to walk their talk. India Inc is waiting with bated breath!," Bakhru added.

Another survey conducted by industry body CII also found that the industry is pinning high hopes on the Narendra Modi-led Government's first full Budget, to be unveiled on Saturday.

Both FICCI and CII surveys showed that a majority of the CEOs believe that a framework for Goods and Services Tax (GST) would be announced in the Budget, which would tilt the balance in the interest of revenue neutrality.

Besides, India Inc wants Finance Minister Arun Jaitley to simplify taxes and step up action on ease of doing business.