New Delhi: According to initial business reports, Indian companies have indicated that there is some recovery in demand in case of the December quarter. Although its growth is not so high, the companies in many industries report that the demand is further improving than it was in the last quarter.
Companies that deal with consumer goods registered improved sales in the festive season, particularly those in cities. There was still a high demand on items such as food, household goods and personal care. Nevertheless, the rural demand remains slow to revive as a result of poor income growth.
Government spending and infrastructure projects have assisted manufacturing companies to report an improvement in their order books. The construction materials, steel and cement sectors improved their demand following the initiation of public projects.
The executives of the corporations claimed customers have more confidence in spending but are price sensitive. The rates had been high and this had slackened spending, but the stabilization of rate is assisting the demand to start recovering slowly.
IT and hospitality service industries were ambivalent. Whereas domestic travel and hotels did very well, IT companies were also on the alert owing to the fear of the global slowdown.
Experts say that demand recovery would only build up gradually in 2026, as long as inflation remains in check. The companies are concentrating on the cost management and efficiency to conserve the profits at this stage.
