NEW DELHI: A recent survey conducted by the Confederation of Indian Industry (CII) reveals an optimistic outlook for the Indian economy, with 75 per cent of the companies believing the present environment is conducive to private investments.
This positive sentiment persists despite continuous challenges posed by geopolitical uncertainties and disrupted supply chains. With 70 per cent of firms planning to invest in FY26, a rise in private sector investments appears likely in the near future.
Chandrajit Banerjee, director general of CII, said, “Given that 70 per cent of the firms surveyed said that they would invest in FY’26, an uptick in private investments might be on the cards over the next few quarters.”
CII launched an industry survey to evaluate the growth in private-sector investments, employment, and wage trends. Employment generation has taken centre stage in policy discussions, with the survey revealing that 97 per cent of firms expect to increase employment in FY25 and FY26. Over the past three years, 79 per cent of respondents reported adding to their workforce.
In FY25 and FY26, 42 per cent to 46 per cent of firms anticipate a 10 per cent to 20 per cent increase in employment, while 31 per cent to 36 per cent expect up to a 10 per cent rise. The manufacturing and services sectors are likely to see direct employment growth of 15 per cent to 22 per cent over the next year. Similarly, indirect employment in these sectors is projected to grow by approximately 14 per cent.
However, the survey highlighted a challenge in filling senior management roles, which often take between one to six months to fill, compared to quicker turnaround times for regular and contractual positions. This indicates a need for more skilled talent at higher levels.
CII stated that India’s vision of a “Viksit Bharat” by 2047 hinges on the crucial goal of creating good-quality jobs.
Banerjee remarked, “With the two critical drivers of growth – private investments and employment – looking positive, we feel confident that the overall growth is likely to remain around a stable 6.4-6.7 per cent this year and is likely to be 7.0 per cent in FY26.”
Wage growth also reflects this economic momentum. Around 40 per cent to 45 per cent of surveyed firms reported average wage increases of 10 per cent to 20 per cent for senior management, supervisory roles, and regular workers in FY24, with similar trends expected for FY25. This rise in wages is likely to boost personal consumption, further supporting the economy.
“These are promising results, exhibiting confidence about some of the important aspects of the economy. That said, results of the survey, when read along with various other emerging economic indicators, will help in a comprehensive understanding of the economy”, the director general added.
The pan India survey, conducted over the past 30 days, involved 300 firms of various sizes: large, medium, and small. It is part of a broader initiative to assess private-sector investments, employment, and wage growth which is set to cover a total of 500 firms by early February. Despite global challenges, including geopolitical disruptions to supply chains, India has emerged as a bright spot, supported by sound government policies focused on public capex-led growth.