The Global Business Outlook Survey released by KPMG International suggests surge in revenues and profits for domestic manufacturers in the next 12 months  According to a report titled ‘Global Business Outlook Survey’ brought out by KPMG International, the manufacturing fraternity in the country holds an optimistic business outlook for this year, with an increase in output and new orders. The report suggests that experts anticipate a strong expansion in R&D and capital spending this year.Economy looking robust
Commenting on the report, Richard Rekhy, head of advisory-KPGM India said, “The economy of the country is looking strong and the leading stock market indices are moving ahead in the right direction with increase in collection of corporate tax and excise duty. Moreover, the recent auction of 3G services also brought in healthy revenue.” Mr Rekhy also added that the country is well marching towards becoming a global manufacturing hub.
One of the major reasons behind manufacturers holding an optimistic business outlook could be the HSBC Markit Purchasing Manager’s Index (PMI), one of the most reliable parameters to gauge manufacturing activities in the country, which has been constantly above 50 in the last few months of 2010—standing at 59 in May, 57.3 in June and 57.6 in July.
According to Vivek Kumar Saha, managing director of Choudhary Enterprises, a small-sized computer hardware dealer in Kolkata, “The Reserve Bank of India’s anticipation of GDP growth of over 8% in 2010-11 is also one of the major factors boosting confidence of Indian manufacturing firms to invest more as a high GDP growth signals a fillip in overall activities of the sector. It also signals more inflow of credit.” It is to be noted that several manufacturing units from diverse sectors such as telecom, automobile, power accessories etc are setting up their manufacturing base in the country, which is boosting business of domestic players in the sector. The KPMG report also expects a surge in revenues and profits over the next 12 months and forecasts an expansion in employment generation.
Arup Choudhury |
