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Assocham: Country’s economy to improve within six months

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Economy of India

New Delhi: According to Assocham Bizcon Survey, the state of country’s economy would improve in the coming six months but investments in the private sector will still be a concern because of under utilisation and pressure on profit margins.

Nearly 63 per cent of the poll respondents felt “the state of the economy would be better in the coming six months”.

However, it found that lack of investment appetite in the private sector in the backdrop of lower capacity utilisation, excess supply and continuous pressure on profitability are the key areas of concern for the next few quarters.

In terms of the domestic investment, 58.3 per cent respondents felt there has been no change in the investment plans at the level of individual firms.

The sentiment seems to remain muted, going forward with 62.5 per cent respondents of the view that January to March 2016 quarter would not see much change in the investment levels.

“Thus, there seems to be a continuing lack of appetite for new investment in the private sector,” the survey noted.

Assocham Secretary General D S Rawat shared the concerns brought out by the respondents in terms of pressure on profitability and lack of investment.

“Global deflationary situation creeping into India in several sectors is hitting investor sentiment. The consumer confidence can return only if there are more job opportunities through higher investment into productive areas of the economy like construction, infrastructure and manufacturing.

“The lead has to be taken by the government which has an onerous task before itself along financial sector regulators like RBI and SEBI to ensure investor confidence in the markets which can then feed the investment climate,” Rawat said.

The respondents seem to be highly optimistic with regards to their firm’s future performance as 70.8 per cent of them feel that they will be in a better position in the coming six months.

As many as 41.7 per cent of respondents felt that there is a decline in the sales volume during October to December 2015 while expecting better sales volume during January to March 2016 and 45.8 per cent expect that their sales volume will increase in future.

In terms of the future capacity utilisation, 66.7 per cent said the industry will be engaged at higher levels.

Besides, 54.2 per cent said there was no change in the cost of credit during October to December 2015.

“This is slightly surprising considering the fact that the monetary authority has reduced the policy rates. The possible explanation to this could be that the benefit of the rate cuts is not being passed onto the industry appropriately,” Assocham said.(IANS)(image: internetblog.urg.uk)

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In a Sudden Move, Malaysia’s King Abdicates Throne

The Council of Rulers is expected to meet soon to pick the next king.

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Malaysia
Malaysia King Sultan Muhammad V salutes during the national anthem at the opening of the 14th parliament session at the Parliament house in Kuala Lumpur, July 17, 2018. VOA

Malaysian King Sultan Muhammad V abdicated on Sunday in an unexpected move, after just two years on the throne.

The palace said in a statement that the 49-year-old ruler had resigned as Malaysia’s 15th king with immediate effect, cutting short his five-year term. No reason was given in the statement.

It marked the first abdication in the nation’s history.

Sultan Muhammad V, ruler of northeast Kelantan state, took his oath of office in December 2016, becoming one of Malaysia’s youngest constitutional monarchs.

Malaysia King
Malaysia’s King Sultan Muhammad V at the Trooping of Colours ceremony.

He is said to have married a 25-year-old former Russian beauty queen in November while on a two-month medical leave. Reports in Russian and British media and on social media featured pictures of the wedding, which reportedly took place in Moscow. Neither the sultan, the palace nor the government had officially confirmed the wedding.

Speculation that Sultan Muhammad V would step down emerged this past week, shortly after he returned from his leave, but Prime Minister Mahathir Mohamad said Friday that he was unaware of any abdication plans.

Also Read: Muslims in Malaysia Rally In Kuala Lumpur To Keep Status

Under a unique system maintained since Malaysia’s independence from Britain in 1957, nine hereditary state rulers take turns as the country’s king for five-year terms.

The Council of Rulers is expected to meet soon to pick the next king.

The monarch’s role is largely ceremonial, since administrative power is vested in the prime minister and parliament. But the monarch is highly regarded, particularly among the ethnic Malay Muslim majority, as the supreme upholder of Malay tradition. (VOA)