Respondents indicated an improvement in their current performance levels and are fairly optimistic about their performance in near future as indicated by the indices. FICCI surveyed around 300 companies with turnover ranging from Rs 1 crore to Rs 40,000 crore in various sectors.

Fifty seven per cent of the participants said that overall economic condition is ’moderately to substantially’ better vis-à-vis last six months.

Further 64 per cent of the participating companies last time had reported that the overall economic condition has deteriorated vis-à-vis last six months, while in the current round just 18 per cent of the respondents reported likewise.

The current survey indicates a major jump in the Overall Business Confidence Index to 64.1 from 44 in the last survey. And this is clearly reminiscent of the high confidence level prevalent during the first half of the year 2007-08.

The participants also indicated weak demand and high credit cost as important areas of concern. They called for a reduction in the interest regime by 3 to 4 per cent.

On the expectations about future industry performance, majority 64 percent of the companies said that they foresee an improvement over the next two quarters.

A large number of respondents cited weak demand as big constraint and asked for more measures from the government and RBI to boost demand.

Another problem area cited by industry is the high cost of available credit.