Synopsis
A recent CII survey indicates that India's growth is projected to remain stable at 6.4-6.7% for the current financial year and reach 7% in FY26, driven by increased private investments and job creation.Key Takeaways
- India's growth anticipated at 6.4% to 6.7% for the current year.
- Projected growth of 7.0% percent in FY26.
- 75% of firms find the economic climate favorable for investments.
- About 97% of firms plan to increase employment.
- Wage growth for senior roles projected at 10% to 20%.
New Delhi, Jan 19 (NationPress) An increase in private investments and employment is anticipated to maintain India’s overall growth between 6.4% and 6.7% during the current financial year, with expectations of reaching 7.0% percent in FY26, as per a survey published by the apex business body CII on Sunday.
India has positioned itself as a favorable destination amidst geopolitical tensions that have disrupted global supply chains and posed significant challenges to worldwide growth, the survey noted.
The robust economic strategies implemented by the Government, emphasizing public capex-driven growth, have contributed to reviving the economy, it highlighted.
The nationwide CII survey, conducted over the past month, revealed that 75% of the participants believe the current economic climate is supportive of private investments.
"With 70% of the firms surveyed indicating plans to invest in FY'26, an upsurge in private investments may be forthcoming in the coming quarters," stated Chandrajit Banerjee, Director General of CII.
In addition to economic expansion, job creation has been a focal point in recent policy dialogues. India’s aspiration for a ‘Viksit Bharat’ by 2047 relies heavily on achieving the crucial goal of creating quality jobs.
Encouragingly, initial findings from the survey show that approximately 97% of the participating companies are likely to enhance employment in both 2024-25 and 2025-26. In fact, 79% of the surveyed firms reported adding more staff over the past three years.
When asked about anticipated job creation in FY'25 and FY'26, around 97% of the firms indicated that employment is expected to rise, with 42% to 46% percent of the firms predicting a 10% to 20% increase in employment beyond the current workforce, while about 31% to 36% percent anticipated an increase of up to 10% percent.
The average growth in direct employment resulting from planned investments in the upcoming year is expected to be between 15% to 22% percent across the manufacturing and services sectors. Similar expectations were noted for indirect employment, with both manufacturing and services firms anticipating about a 14% percent increase in indirect employment over existing levels.
The majority of firms surveyed indicated that it takes between one to six months to fill vacancies at senior management and supervisory levels, while regular and contractual positions are filled more rapidly, suggesting a need for skilled personnel at higher levels within the firms.
Regarding wage growth, which influences personal consumption, a significant portion (40% to 45% percent) of the surveyed firms reported an increase in average wage growth for senior management, managerial/supervisory roles, and regular workers in the range of 10% to 20% percent in FY'25. This trend was similar in FY'24.
The CII survey was based on a sample of 300 firms across various industry sizes (Large, Medium, and Small).
