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: India’s business confidence sank to a seven-year low, with the bulk of corporates fearing a further weakening in the overall economic condition in the next six months, according to an industry survey.

37.8 Ficci’s Business Confidence Index for the July-September quarter, compared to 52.5 in the last survey

88% Respondents feel current economic conditions have moderately to substantially worsened in the last six months, according to data from 412 Indian companies

50%of the companies polled feared their industry performance would weaken further in the coming six months with near-term prospects for sales, profits and investments very bleak

84% of respondents said they already have or are looking at limiting new recruitments

Major complaints

• Easy credit availability a key issue for Indian companies

• Banks’ lending to industry lagging behind the RBI’s measures to infuse liquidity into the system

• Export-related companies say they face cancellations of orders and price competition from other countries, mainly China

• Respondents recommended reductions in interest rates and direct fiscal intervention in the form of tax cuts

The growth story

7.6% growth in India’s economy in the second quarter of fiscal 2009, compared to over 9 % in the last three years, with economists forecasting a further slowdown in coming quarters

• The government has so far announced two fiscal packages to stimulate demand