India Incorporation sees slowdown to continue for two more years, but is optimistic of reaching 10% growth in the current fiscal, reports PTI, quoting consultancy firm Ernst and Young (E&Y).
According to a survey conducted by E&Y, Opportunities In Adversity: India Inc's Response To Financial Downturn , 65% of the respondents opined that the present slowdown would continue for two more years, while about 27% felt it could last for 6 to 12 months.
More than 120 top management executives were interviewed, and 46% of them expressed confidence of achieving at least 10% overall growth in the current fiscal.
E&Y Partner and National Director (Markets) Sunil Chandiramani, reportedly said that organizations were more optimistic on their own prospects as they had greater influence on their performance and were cautious on the macro-economic outlook as it depended on many additional factors. He added that the past two months were extremely tough and companies responded to these challenges well.
About 63% of the respondents expected consolidation and 58% were looking at mergers and acquisitions for business growth. The survey said the non-availability of leverage options curtailed cross-border acquisitions significantly and with the global economy slowing faster, Indian companies had become more cautious.
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