Almost 70 per cent respondents to the FICCI-Dhruva Advisors Survey, said shifting of global supply chains from China may benefit India by moving a fair share of manufacturing operations to India. The vaccine may also boost Indian businesses, said 74 per cent 1participants, says a SRTEPC report. However, to capitalize on these opportunities, India needs to strengthen its manufacturing ecosystem, says Uday Shankar, President, FICCI. Under the Aatmanirbhar Bharat package, the government has introduced several measures that have been well received by the industry.

Around 45 per cent of surveyed companies rated the latest set of announcements made under Aatmanirbhar Bharat package 3.0 as 'good to excellent'. To overcome the challenges posed by travel restrictions, 64 per cent firms plan to use a mix of travel and virtual meetings even after the situation becomes normal. Nearly 40 per cent reported operating at capacity utilization level of over 70 per cent, vis-a-vis 30 per cent of the companies in August 2020. Almost 50 per cent companies reported an increase in their order books and about 40 per cent said their exports have increased.

However, the survey results show businesses continue to face challenges on account of weak demand, managing costs, and financial liquidity, states Shankar. Hence, survey participants expect both government and RBI to continue with their support measures even next year. They expect the upcoming budget to prioritize growth-oriented measures, including a cut in direct tax rates.

Dinesh Kanabar, CEO, Dhruva Advisors LLP, says, the Union Budget 2021-22 is one of the most anticipated Budgets and the government should introduce new growth-oriented measures and tax cut proposals.