India’s economic environment is currently favorable for private investments, positioning the country as a “bright spot” amid global challenges, according to a recent Confederation of Indian Industry (CII) survey. The survey, which is an ongoing national initiative, has gathered insights from 300 firms across various industry sectors, including large, medium, and small businesses. The survey aims to complete responses from 500 firms by the first week of February.
Key Findings from the CII Survey:
- Private Investment Confidence: The survey indicates that a significant 75% of the firms believe the current economic climate is favorable for private investments. With 70% of the firms planning to invest in FY 2026, this suggests a potential increase in private investments in the coming quarters.
- Employment Growth: One of the most notable findings is the strong employment outlook. Approximately 97% of the surveyed firms indicated their intention to increase employment in both 2024-25 and 2025-26. Over the past three years, 79% of these firms have already added more employees, demonstrating their commitment to workforce expansion.
- Wage Growth: Regarding wage growth, 40-45% of the firms surveyed reported an increase in wages for senior management, managerial, supervisory roles, and regular workers, with increases ranging between 10% to 20% in FY 2024-25. This wage growth is expected to contribute positively to personal consumption.
- Employment in Manufacturing and Services Sectors: The survey reveals that planned investments are expected to result in a direct employment increase of 15-22% across the manufacturing and services sectors in the coming year. Indirect employment in these sectors is also projected to grow by approximately 14%, further reinforcing the positive impact on overall job creation.
- Filling Vacancies: The survey highlights that while senior management and supervisory-level vacancies take between 1 to 6 months to fill, positions for regular and contractual workers are filled more quickly. This reflects the ongoing demand for skilled labor at higher levels within firms.
CII’s Director General, Chandrajit Banerjee, Comments on the Findings:
Banerjee emphasized that India has emerged as a strong player despite global challenges like geopolitical tensions and disrupted supply chains. “The sound economic policies initiated by the Government have revived the economy, with a focus on public capital expenditure-led growth. This has significantly contributed to India’s growth amid a challenging global economic backdrop.”
With private investments and employment looking strong, Banerjee expressed confidence that India’s economic growth will remain stable, with projections of 6.4% to 6.7% growth this year, and a potential increase to 7% in FY 2026.
Looking Ahead: A Positive Economic Outlook
The CII survey results present an optimistic view of India’s economic trajectory, fueled by increased private investment, job creation, and wage growth. With private sector investments and employment expansion playing a pivotal role in the country’s economic growth, India is well-positioned to maintain a steady growth trajectory.
As Banerjee noted, “These promising results reflect confidence in key economic drivers, and when coupled with other emerging economic indicators, they will help in building a more comprehensive understanding of the overall economy.”
India’s economic outlook is bright, with private investments, employment growth, and wage increases indicating a stable and promising future. The continued implementation of sound economic policies, investment in both human and capital resources, and a focus on sustainability are all expected to play a crucial role in India’s economic growth in the coming years.
