• A CII survey indicates that 75% of firms find India's economic environment favorable for private investment.
• About 97% of companies plan to increase employment in FY25 and FY26.
• Ambitious wage growth expectations of 10% to 20% are seen across various roles, supporting personal consumption.
• Despite global disruptions, India is emerging as a "bright spot" for investment opportunities.
• The survey results reflect confidence in achieving a stable economic growth rate of around 6.4-7%.

According to a recent survey conducted by the Confederation of Indian Industry (CII), India's current economic landscape is seen as significantly conducive to private investments, with strong optimism among firms despite prevailing global challenges. Approximately 75% of surveyed companies believe that the present environment supports investment decisions. The survey, which encompassed responses from 300 companies of various sizes, highlights a collective confidence in India's potential as a "bright spot" amidst ongoing geopolitical uncertainties that have disrupted global supply chains.

The CII survey results reveal a robust outlook for employment growth, with 97% of firms expecting to increase their workforce in the fiscal years 2024-25 and 2025-26. Notably, 70% of these firms are planning investments for FY26, indicating a strong uptick in private-sector investments soon. Director General of CII, Chandrajit Banerjee, affirmed, "Given that 70% of the firms surveyed said that they would invest in FY'26, an uptick in private investments might be on the cards over the next few quarters."

Respondents also projected that job creation would benefit significantly from these investments. The anticipated growth in direct employment rates stands between 15% and 22% across the manufacturing and services sectors. Indirect employment opportunities are also expected to rise by approximately 14% as firms gear up to fulfill skill demands in various roles. However, a notable challenge remains in swiftly filling senior management positions, which take between one to six months to occupy, signaling a lack of readily available skilled talent at higher levels.

The survey has also brought attention to wage growth potential, with 40% to 45% of firms reporting expected wage increases of 10% to 20% for various roles in FY24 and FY25. This upward wage trend is poised to enhance personal consumption, further energizing the overall economy.

Banerjee highlighted the significance of these positive indicators, stating, "With the two critical drivers of growth - private investments and employment - looking positive, we feel confident that the overall growth is likely to remain around a stable 6.4-6.7% this year and is likely to be 7% in FY26." The survey results, based on an ongoing initiative expected to cover a total of 500 firms by February, underscore the government's focus on public capex-led growth as a crucial driver in revitalizing the economy.

As India strives toward its vision of a "Viksit Bharat" by 2047, insights from this survey will aid in understanding the evolving economic landscape and the critical role of job creation in achieving long-term goals.

For further details, refer to the original reports by India Times.