With economic activity crippled across the country due to the pan-India lockdown, business confidence has turned extremely weak. A CNBC-TV18 CII Survey shows that the business confidence score stands at 4.2 on a scale of 10.
Fifty percent respondents say that they haven't seen any improvement in economic activity in the past two weeks, they also say that there hasn't been any improvement in activity in their companies during this period.
When asked about capacity utilisation so far in the current fiscal year, 67 percent respondents said that it stands below 50 percent.
For the full fiscal year, while about 44 percent respondents expect up to 50 percent capacity utilisation, 26.5 percent expect it to remain below 50 percent.
On jobs and salary cuts
While a majority of the respondents said they have not instituted layoffs or salary cuts within their firms, they do feel that job loss and wage reduction are imminent in their respective sectors.
CNBC-TV18 discussed this with MS Unnikrishnan, MD & CEO of Thermax and also the chairman of CII’s Industrial Relations Committee and Ashok Saigal, MD of Frontec, heat shrink products, he is also the co-chairman of CII National MSME Council.