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Date : Oct 08, 2021
Services and Infrastructure Outlook Survey for Q2:2021-22

Today, the Reserve Bank released the results of 30th round of its quarterly services and infrastructure outlook survey (SIOS) conducted during Q2:2021-22. This forward-looking survey captures qualitative assessment and expectations of Indian companies in the services and infrastructure sectors on a set of business parameters relating to demand conditions, price situation and other business conditions. 788 companies provided their assessment for Q2:2021-22 and expectations for Q3:2021-22 in the latest round of the survey1. Owing to uncertainties emanating from the COVID-19 pandemic, an additional block was included in this round of the survey for assessing the outlook on key parameters for two quarters ahead as well as three quarters ahead.

Highlights:

A. Services Sector

Assessment for Q2:2021-22

  • Services sector enterprises reported a rebound in turnover as well as overall business situation during Q2:2021-22 after a sharp decline in Q1:2021-22 due to second wave of the pandemic (Chart 1 and Table A).

  • Sentiments on employment conditions improved during Q2:2021-22 after contraction in the previous quarter.

  • Respondents reported improvement in overall financial situation and availability of finance.

  • Pressures from cost of finance, input costs and salary outgo are assessed to have led to higher cost burden in Q2:2021-22 but some rise in selling prices helped turning the sentiments on profit margins positive.

Expectations for Q3:2021-22

  • Overall business situation, turnover and employment conditions are expected to improve further (Chart 1).

  • Respondents expect improved availability of finance in Q3:2021-22.

  • Cost pressures are likely to amplify and selling prices are also expected to harden in Q3:2021-22: profit margins are expected to improve.

Expectations for Q4:2021-22 and Q1:2022-23

  • Demand conditions are expected to improve gradually till Q1:2022-23 (Table C).

  • Enterprises anticipate input cost pressures to continue and selling prices to rise.

Chart 1

B. Infrastructure Sector

Assessment for Q2:2021-22

  • Infrastructure companies also gauged a positive turnaround in their turnover as well as overall business situation from the contraction in the aftermath of the pandemic’s second wave (Chart 2 and Table B).

  • Respondents assessed recovery in both full-time and part-time employment.

  • Higher cost pressures kept the sentiments on profit margin subdued, although it improved over the previous quarter.

Expectations for Q3:2021-22

  • Demand parameters in the infrastructure sector are expected to improve in Q3:2021-22 (Chart 2 and Table B).

  • The job landscape is expected to expand further in terms of both full-time and part-time employment.

  • Input cost pressures are anticipated to be higher in Q3:2021-22.

Expectations for Q4:2021-22 and Q1:2022-23

  • Overall business situation and demand conditions are expected to improve during Q4:2021-22 and Q1:2022-23 (Table D).

  • Both Input costs and selling prices are expected to rise.

Chart 2

Summary of Net Responses2 on Survey Parameters
Table A: Services Sector
(per cent)
Parameters Assessment period Expectations period
Q1:21-22 Q2:21-22 Q2:21-22 Q3:21-22
Overall Business Situation -15.9 24.2 45.0 72.9
Turnover -19.2 21.0 40.1 71.3
Full-time Employees -6.6 15.6 30.5 52.9
Part-time Employees 4.3 21.2 39.1 67.6
Availability of Finance -11.0 14.4 35.5 57.2
Cost of Finance -3.0 -17.9 -37.2 -53.3
Salary & Wages -5.0 -21.7 -32.0 -51.7
Cost of Inputs -27.0 -41.7 -45.2 -68.8
Selling Price 11.1 16.8 37.2 60.2
Profit Margin -20.0 0.6 28.9 48.8
Inventories 2.1 17.4 32.0 60.4
Technical/Service Capacity 13.7 27.9 42.7 73.2
Physical Investment 9.3 26.0 41.5 68.2

Table B: Infrastructure Sector
(per cent)
Parameters Assessment period Expectations period
Q1:21-22 Q2:21-22 Q2:21-22 Q3:21-22
Overall Business Situation -27.0 10.8 50.5 69.2
Turnover -30.6 2.9 43.9 63.3
Full-time Employees -16.8 2.5 32.1 45.8
Part-time Employees -3.3 19.6 49.2 67.3
Availability of Finance -22.1 5.8 38.3 51.9
Cost of Finance 5.1 -11.8 -41.0 -47.2
Salary & Wages 3.2 -13.3 -37.8 -48.7
Cost of Inputs -37.3 -54.6 -62.4 -76.1
Selling Price 0.9 14.1 50.5 57.9
Profit Margin -30.8 -9.6 34.7 43.1
Inventories 0.9 16.4 42.4 53.6
Technical/Service Capacity 6.0 25.9 69.6 80.6
Physical Investment 10.8 25.7 68.8 70.8

Expectations of Select Parameters for extended period – Net response
(in per cent)
Table C: Services Sector
Parameter Round 29 Round 30
Q2:2021-22 Q3:2021-22 Q4:2021-22 Q1:2022-23
Overall Business Situation 45.0 72.9 74.9 75.6
Turnover 40.1 71.3 72.8 75.6
Full-time Employees 30.5 52.9 62.1 61.9
Part-time Employees 39.1 67.6 70.9 72.6
Cost of Inputs -45.2 -68.8 -68.3 -68.1
Selling Price 37.2 60.2 65.1 63.1

Table D: Infrastructure Sector
Parameter Round 29 Round 30
Q2:2021-22 Q3:2021-22 Q4:2021-22 Q1:2022-23
Overall Business Situation 50.5 69.2 68.9 69.7
Turnover 43.9 63.3 68.1 68.1
Full-time Employees 32.1 45.8 57.6 58.6
Part-time Employees 49.2 67.3 75.3 76.0
Cost of Inputs -62.4 -76.1 -74.3 -73.4
Selling Price 50.5 57.9 58.5 57.4

Note: Please see the excel file for time series data.

Services Sector

Table S1: Assessment and Expectation for Overall Business Situation
(Percentage responses)@
Quarter Assessment Expectation
Better No Change Worse Net response# Better No Change Worse Net response
Q2:20-21 26.4 42.4 31.1 -4.7 29.0 43.9 27.1 1.9
Q3:20-21 43.2 44.5 12.3 30.9 40.3 46.3 13.4 27.0
Q4:20-21 39.2 42.4 18.3 20.9 50.4 43.7 5.9 44.5
Q1:21-22 22.8 38.5 38.7 -15.9 59.3 31.5 9.2 50.1
Q2:21-22 38.7 46.8 14.5 24.2 51.9 41.1 6.9 45.0
Q3:21-22         75.3 22.3 2.4 72.9
‘Increase’ in Overall business situation is optimistic.
@: Due to rounding off percentage may not add up to 100.
#: Net Response (NR) is the difference of percentage of the respondents reporting optimism and that reporting pessimism. The range is -100 to 100. Any value greater than zero indicates expansion/ optimism and any value less than zero indicates contraction/ pessimism.

Table S2: Assessment and Expectation for Turnover
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 28.0 33.2 38.7 -10.7 30.4 33.9 35.8 -5.4
Q3:20-21 43.7 36.3 20.0 23.7 40.5 40.2 19.3 21.2
Q4:20-21 38.1 41.6 20.3 17.7 48.6 41.1 10.3 38.4
Q1:21-22 20.5 39.7 39.7 -19.2 62.3 29.1 8.6 53.7
Q2:21-22 38.8 43.4 17.8 21.0 49.0 42.2 8.8 40.1
Q3:21-22         75.0 21.4 3.7 71.3
‘Increase’ in Turnover is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S3: Assessment and Expectation for Full-time Employees
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 15.2 60.9 24.0 -8.8 13.4 68.7 17.9 -4.6
Q3:20-21 24.9 59.8 15.3 9.5 17.0 70.0 13.0 4.0
Q4:20-21 19.6 66.3 14.1 5.6 22.9 69.5 7.5 15.4
Q1:21-22 14.4 64.6 21.0 -6.6 35.2 58.2 6.6 28.7
Q2:21-22 26.5 62.7 10.8 15.6 34.4 61.7 3.9 30.5
Q3:21-22         55.5 41.9 2.6 52.9
‘Increase’ in Full-time Employees is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S4: Assessment and Expectation for Part-time Employees
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 8.3 68.1 23.6 -15.4 8.5 70.4 21.2 -12.7
Q3:20-21 10.0 75.7 14.3 -4.3 9.5 77.2 13.3 -3.8
Q4:20-21 16.3 72.1 11.6 4.7 15.0 76.7 8.3 6.6
Q1:21-22 16.8 70.8 12.4 4.3 26.6 66.3 7.1 19.4
Q2:21-22 25.3 70.7 4.0 21.2 43.2 52.7 4.1 39.1
Q3:21-22         70.3 27.0 2.7 67.6
‘Increase’ in Part-time Employees is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S5: Assessment and Expectation for Availability of Finance
(Percentage responses)
Quarter Assessment Expectation
Improve No Change Worsen Net response Improve No Change Worsen Net response
Q2:20-21 15.4 68.0 16.6 -1.1 15.9 66.6 17.5 -1.7
Q3:20-21 21.3 68.0 10.7 10.7 17.7 69.9 12.4 5.3
Q4:20-21 31.0 52.7 16.4 14.6 25.5 65.9 8.6 16.9
Q1:21-22 14.2 60.6 25.2 -11.0 47.6 43.9 8.5 39.1
Q2:21-22 28.4 57.6 14.0 14.4 40.5 54.4 5.1 35.5
Q3:21-22         59.8 37.5 2.6 57.2
‘Improve’ in Availability of Finance is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S6: Assessment and Expectation for Cost of Finance
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 15.1 69.7 15.1 0.0 18.1 68.9 13.0 -5.1
Q3:20-21 16.8 70.9 12.3 -4.6 13.5 75.1 11.4 -2.2
Q4:20-21 19.0 65.9 15.1 -3.9 17.0 74.6 8.5 -8.5
Q1:21-22 18.6 65.9 15.5 -3.0 34.1 54.2 11.8 -22.3
Q2:21-22 25.8 66.3 7.9 -17.9 41.2 54.7 4.1 -37.2
Q3:21-22         56.0 41.2 2.7 -53.3
‘Decrease’ in Cost of Finance is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S7: Assessment and Expectation for Salary/Wages
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 16.9 66.4 16.7 -0.3 15.8 66.2 18.0 2.3
Q3:20-21 23.7 64.5 11.7 -12.0 19.0 71.6 9.5 -9.5
Q4:20-21 24.5 67.3 8.3 -16.2 26.4 67.6 6.0 -20.3
Q1:21-22 16.4 72.1 11.4 -5.0 45.2 51.2 3.6 -41.6
Q2:21-22 29.0 63.6 7.4 -21.7 34.8 62.5 2.8 -32.0
Q3:21-22         53.4 44.9 1.7 -51.7
‘Decrease’ in Salary/Wages is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S8: Assessment and Expectation for Cost of Inputs
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 34.6 56.9 8.4 -26.2 25.8 63.6 10.6 -15.2
Q3:20-21 33.2 61.5 5.2 -28.0 30.6 63.1 6.4 -24.2
Q4:20-21 31.4 62.5 6.0 -25.4 34.0 61.1 4.8 -29.2
Q1:21-22 34.6 57.8 7.6 -27.0 46.0 51.1 2.9 -43.2
Q2:21-22 44.4 52.8 2.7 -41.7 47.5 50.2 2.3 -45.2
Q3:21-22         69.3 30.3 0.4 -68.8
‘Decrease’ in Cost of Inputs is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S9: Assessment and Expectation for Selling Price
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 6.1 75.1 18.8 -12.6 6.1 75.4 18.6 -12.5
Q3:20-21 7.0 76.0 16.9 -9.9 7.8 79.1 13.2 -5.4
Q4:20-21 20.4 62.9 16.7 3.6 11.3 77.7 11.0 0.3
Q1:21-22 19.1 73.0 7.9 11.1 37.5 56.1 6.3 31.2
Q2:21-22 24.2 68.4 7.4 16.8 39.2 58.9 1.9 37.2
Q3:21-22         62.3 35.6 2.1 60.2
‘Increase’ in Selling Price is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S10: Assessment and Expectation for Profit Margin
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 12.4 45.8 41.9 -29.5 13.4 48.5 38.1 -24.8
Q3:20-21 19.0 50.8 30.2 -11.1 20.5 52.7 26.8 -6.3
Q4:20-21 20.7 53.1 26.2 -5.6 21.6 58.3 20.2 1.4
Q1:21-22 13.5 53.0 33.5 -20.0 44.5 43.5 12.0 32.5
Q2:21-22 22.4 55.7 21.9 0.6 38.6 51.7 9.7 28.9
Q3:21-22         55.0 38.8 6.2 48.8
‘Increase’ in Profit Margin is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S11: Assessment and Expectation for Inventories
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 14.4 65.3 20.3 -5.9 14.5 68.8 16.7 -2.2
Q3:20-21 17.9 70.2 11.9 6.0 15.9 69.6 14.6 1.3
Q4:20-21 15.0 73.7 11.3 3.6 20.6 71.2 8.3 12.3
Q1:21-22 14.4 73.3 12.3 2.1 29.6 61.9 8.5 21.1
Q2:21-22 25.5 66.4 8.1 17.4 36.0 60.1 3.9 32.0
Q3:21-22         62.8 34.8 2.4 60.4
‘Increase’ in Inventories is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S12: Assessment and Expectation for Technical/Service Capacity
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 12.5 80.6 6.9 5.6 13.9 78.6 7.5 6.3
Q3:20-21 14.6 81.5 3.9 10.7 14.8 80.1 5.2 9.6
Q4:20-21 25.5 70.5 4.0 21.5 16.8 79.4 3.8 13.1
Q1:21-22 18.6 76.4 4.9 13.7 42.5 55.9 1.6 40.9
Q2:21-22 29.3 69.3 1.4 27.9 44.4 54.0 1.7 42.7
Q3:21-22         73.7 25.7 0.6 73.2
‘Increase’ in Technical/Service Capacity is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S13: Assessment and Expectation for Physical Investment
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 8.0 82.7 9.3 -1.4 13.9 75.3 10.8 3.2
Q3:20-21 13.2 79.4 7.4 5.7 8.5 84.0 7.5 1.1
Q4:20-21 18.0 76.4 5.6 12.4 14.0 80.8 5.2 8.7
Q1:21-22 14.6 80.2 5.3 9.3 34.7 61.8 3.6 31.1
Q2:21-22 27.6 70.8 1.6 26.0 42.8 55.9 1.3 41.5
Q3:21-22         68.8 30.7 0.5 68.2
‘Increase’ in Physical Investment is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Infrastructure Sector

Table I1: Assessment and Expectation for Overall Business Situation
(Percentage responses)@
Quarter Assessment Expectation
Better No Change Worse Net response# Better No Change Worse Net response
Q2:20-21 25.2 38.6 36.2 -11.0 29.5 46.7 23.8 5.7
Q3:20-21 35.2 45.8 19.0 16.2 34.4 46.1 19.5 14.8
Q4:20-21 42.0 36.4 21.6 20.5 47.1 43.5 9.4 37.7
Q1:21-22 16.7 39.5 43.8 -27.0 70.2 23.8 6.0 64.3
Q2:21-22 35.0 40.8 24.2 10.8 56.6 37.4 6.0 50.5
Q3:21-22         71.3 26.7 2.1 69.2
‘Increase’ in Overall business situation is optimistic.
@: Due to rounding off percentage may not add up to 100.
#: Net Response (NR) is the difference of percentage of the respondents reporting optimism and that reporting pessimism. The range is -100 to 100. Any value greater than zero indicates expansion/ optimism and any value less than zero indicates contraction/ pessimism.

Table I2: Assessment and Expectation for Turnover
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 23.4 35.9 40.6 -17.2 24.5 45.1 30.4 -5.9
Q3:20-21 29.8 44.0 26.2 3.5 38.1 41.3 20.6 17.5
Q4:20-21 47.7 32.6 19.8 27.9 41.8 48.2 9.9 31.9
Q1:21-22 13.9 41.6 44.5 -30.6 61.2 34.1 4.7 56.5
Q2:21-22 29.6 43.8 26.7 2.9 51.1 41.8 7.1 43.9
Q3:21-22         67.9 27.5 4.6 63.3
‘Increase’ in Turnover is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I3: Assessment and Expectation for Full-time Employees
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 3.9 66.1 29.9 -26.0 7.7 70.2 22.1 -14.4
Q3:20-21 7.1 71.6 21.3 -14.2 8.8 74.4 16.8 -8.0
Q4:20-21 11.9 69.0 19.0 -7.1 14.3 74.3 11.4 2.9
Q1:21-22 9.3 64.6 26.1 -16.8 31.3 61.4 7.2 24.1
Q2:21-22 20.4 61.7 17.9 2.5 36.1 59.9 4.0 32.1
Q3:21-22         50.0 45.8 4.2 45.8
‘Increase’ in Full-time Employees is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I4: Assessment and Expectation for Part-time Employees
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 5.6 69.6 24.8 -19.2 9.8 71.6 18.6 -8.8
Q3:20-21 8.7 76.8 14.5 -5.8 10.6 76.4 13.0 -2.4
Q4:20-21 15.3 73.6 11.1 4.2 12.6 77.8 9.6 3.0
Q1:21-22 11.0 74.7 14.3 -3.3 23.5 67.6 8.8 14.7
Q2:21-22 23.5 72.5 3.9 19.6 52.5 44.2 3.3 49.2
Q3:21-22         69.3 28.8 2.0 67.3
‘Increase’ in Part-time Employees is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I5: Assessment and Expectation for Availability of Finance
(Percentage responses)
Quarter Assessment Expectation
Improve No Change Worsen Net response Improve No Change Worsen Net response
Q2:20-21 14.4 60.8 24.8 -10.4 14.7 66.7 18.6 -3.9
Q3:20-21 18.6 62.1 19.3 -0.7 21.8 58.1 20.2 1.6
Q4:20-21 24.7 57.6 17.6 7.1 23.0 64.0 12.9 10.1
Q1:21-22 10.0 57.9 32.1 -22.1 35.7 53.6 10.7 25.0
Q2:21-22 26.7 52.5 20.8 5.8 44.9 48.5 6.6 38.3
Q3:21-22         56.1 39.7 4.2 51.9
‘Improve’ in Availability of Finance is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I6: Assessment and Expectation for Cost of Finance
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 24.4 63.4 12.2 -12.2 28.7 59.4 11.9 -16.8
Q3:20-21 20.3 73.2 6.5 -13.8 27.6 65.9 6.5 -21.1
Q4:20-21 25.0 66.7 8.3 -16.7 24.6 68.1 7.2 -17.4
Q1:21-22 15.9 63.0 21.0 5.1 31.7 67.1 1.2 -30.5
Q2:21-22 23.1 65.5 11.3 -11.8 44.6 51.7 3.7 -41.0
Q3:21-22         49.8 47.7 2.6 -47.2
‘Decrease’ in Cost of Finance is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I7: Assessment and Expectation for Salary/Wages
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 12.0 64.8 23.2 11.2 21.8 60.4 17.8 -4.0
Q3:20-21 19.3 70.0 10.7 -8.6 23.4 71.0 5.6 -17.7
Q4:20-21 19.0 72.6 8.3 -10.7 22.5 71.7 5.8 -16.7
Q1:21-22 11.5 73.8 14.7 3.2 45.6 48.1 6.3 -39.2
Q2:21-22 23.8 65.8 10.4 -13.3 40.7 56.4 2.9 -37.8
Q3:21-22         51.3 46.2 2.5 -48.7
‘Decrease’ in Salary/Wages is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I8: Assessment and Expectation for Cost of Inputs
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 36.1 59.7 4.2 -31.9 31.6 62.2 6.1 -25.5
Q3:20-21 38.2 56.6 5.1 -33.1 44.4 53.8 1.7 -42.7
Q4:20-21 46.1 52.6 1.3 -44.7 42.2 56.3 1.5 -40.7
Q1:21-22 41.9 53.5 4.6 -37.3 47.2 50.0 2.8 -44.4
Q2:21-22 55.9 42.7 1.3 -54.6 62.4 37.6 0.0 -62.4
Q3:21-22         76.5 23.0 0.4 -76.1
‘Decrease’ in Cost of Inputs is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I9: Assessment and Expectation for Selling Price
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 8.9 63.4 27.7 -18.8 7.5 68.8 23.7 -16.1
Q3:20-21 8.7 75.4 15.9 -7.1 10.9 68.2 20.9 -10.0
Q4:20-21 23.9 56.3 19.7 4.2 15.2 72.8 12.0 3.2
Q1:21-22 12.7 75.6 11.8 0.9 33.3 52.2 14.5 18.8
Q2:21-22 25.8 62.6 11.6 14.1 51.8 46.8 1.4 50.5
Q3:21-22         59.9 38.1 2.0 57.9
‘Increase’ in Selling Price is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I10: Assessment and Expectation for Profit Margin
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 7.3 43.5 49.2 -41.9 11.9 44.6 43.6 -31.7
Q3:20-21 11.3 53.9 34.8 -23.4 17.4 47.9 34.7 -17.4
Q4:20-21 18.5 51.9 29.6 -11.1 21.0 54.3 24.6 -3.6
Q1:21-22 8.6 52.0 39.4 -30.8 39.2 44.3 16.5 22.8
Q2:21-22 19.2 51.9 28.9 -9.6 42.3 50.0 7.7 34.7
Q3:21-22         49.8 43.5 6.7 43.1
‘Increase’ in Profit Margin is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I11: Assessment and Expectation for Inventories
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 12.4 75.2 12.4 0.0 14.3 72.4 13.3 1.0
Q3:20-21 12.9 75.0 12.1 0.8 18.0 69.7 12.3 5.7
Q4:20-21 28.9 60.5 10.5 18.4 16.8 73.3 9.9 6.9
Q1:21-22 10.9 79.2 10.0 0.9 33.8 59.2 7.0 26.8
Q2:21-22 25.1 66.1 8.7 16.4 45.2 52.1 2.8 42.4
Q3:21-22         58.6 36.5 5.0 53.6
‘Increase’ in Inventories is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I12: Assessment and Expectation for Technical/Service Capacity
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 5.6 85.2 9.3 -3.7 8.8 80.2 11.0 -2.2
Q3:20-21 9.2 83.3 7.5 1.7 9.5 82.9 7.6 1.9
Q4:20-21 20.6 69.8 9.5 11.1 10.0 85.0 5.0 5.0
Q1:21-22 12.1 81.9 6.0 6.0 28.6 64.3 7.1 21.4
Q2:21-22 29.6 66.7 3.7 25.9 70.3 29.1 0.7 69.6
Q3:21-22         82.1 16.4 1.5 80.6
‘Increase’ in Technical/Service Capacity is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I13: Assessment and Expectation for Physical Investment
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:20-21 10.7 75.7 13.6 -2.9 9.1 72.7 18.2 -9.1
Q3:20-21 9.4 82.1 8.5 0.9 17.6 72.5 9.8 7.8
Q4:20-21 14.3 79.4 6.3 7.9 14.8 77.4 7.8 7.0
Q1:21-22 15.9 79.0 5.1 10.8 29.0 66.1 4.8 24.2
Q2:21-22 28.5 68.8 2.8 25.7 68.8 31.2 0.0 68.8
Q3:21-22         73.6 23.6 2.8 70.8
‘Increase’ in Physical Investment is optimistic. Footnotes @ and # given in Table 1 are applicable here.

1 The survey results reflect the respondents’ views, which are not necessarily shared by the Reserve Bank. Results of the previous survey round were released on the Bank’s website on August 06, 2021. This round of the survey was launched on July 20, 2021 and results were compiled with data received till September 24, 2021.

2 Net Response (NR) is the difference between the percentage of respondents reporting optimism and those reporting pessimism. It ranges between -100 to 100. Positive value indicates expansion/optimism and negative value indicates contraction/pessimism. In other words, NR = (I – D); where, I is the percentage response of ‘Increase/optimism’, D is the percentage response of ‘Decrease/pessimism’ and E is the percentage response as ‘no change/ equal’ (i.e., I+D+E=100). For example, increase in turnover is optimism whereas decrease in cost of inputs is optimism.


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