Pointing out a decline in overall business confidence, industry body Assocham today said corporates which are braving negative perception may not be able to maintain their profitability unless “good signals” emerge on the policy front.
Ahead of the July 31 monetary policy review of the RBI, the chamber also made a case for reduction in interest rates for pick up in the economy.
It said that while corporates braved a negative perception about the economy and managed to hold on to growth both in net profits and total income in June quarter of 2012-13, the future is uncertain.
“While it goes to the credit of corporate India to hold on to their bottomline, though at a lower pace, it would be risky to assume that they will manage to do well in the future as headwinds are growing stronger,” the Assocham President, Mr Rajkumar Dhoot, said.
He said a recent analysis showed that the overall business confidence slipped in the last six months.
“Things may improve somewhat if good signals emerge from the Government and the US,” Mr Dhoot added.