Cos tell executives to clamp down on costs and watch spending closely; most expect a turnaround soon.
India’s economic slump has companies worried to varying degrees — most have told executives to clamp down on costs and watch spending closely. Recruitment hasn’t been frozen but some have confined themselves to replacement hires. Most expect a turnaround sooner rather than later.
Corporate bosses across sectors told ET in strict anonymity that they were disappointed by the lack of stimulus measures in the July 5 budget. Some also characterised the higher surcharge on the super-rich as inimical to corporates. FM Nirmala Sitharaman has said the government believed the richest should contribute more to society and nation building.
Some veterans are optimistic that a turnaround isn’t too far away.
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“My view is that we will emerge out of this downturn within a year,” said L&T chairman AM Naik. L&T said Tuesday that June quarter profit rose 20% and contracts advanced 12%.
Godrej Group chairman Adi Godrej said it hadn’t stopped hiring, reflecting belief in the economy’s resilience. “We are also hopeful of a recovery in a couple of months,” he said.
Source: Economic Times
