CII and BCG monthly growth survey of CXOs across sectors to track performance shows that July has shown signs of recovery with 4% year-on-year growth. The revival was mainly driven by northern regions, which grew at 4% overall, as opposed to the flat rate recorded in June. Southern and western regions are witnessing a growth rate of 3%, while the eastern region witnessed only 2% growth. Most sectors recorded positive growth rates in July. However, new order inflows maintained a downward trend, recording values of 2.2% and 1.3%, respectively in June and July.
Respondents have identified the lack of clarity and the uncertain compliance of business partners to be the two main challenges with regard to the implementation of the new GST system. Some expressed the concern that adapting to new regulations will take up to three months. Nevertheless, respondents across most segments have a positive sentiment towards GST and the impact it will have on business over the medium and long run.
Arun Bruce and Mani Singhal from BCG, Sangita Das from CII