Business sentiment for July-September 2020

S12 findings need to be viewed in the context of the Covid-19 pandemic in the last quarter of fiscal 2020, which caused a sudden halt in economic activities globally. In addition, continued nationwide lockdown by the Indian government in the first quarter of fiscal 2021, to arrest the spread of the virus, led to supply disruption along with reduction in demand for non-essential goods and services. S12 reflects gradual re-opening of businesses with unlocking of the economy in phases.

Sectors that saw a positive trend

• Among manufacturers, 20% reported a good SQ12, higher than 4% in SQ11, but lower than 27% in the same quarter a year ago (SQ8).
  
  • In SQ12, pharmaceuticals, food products and chemicals sectors had the highest share of respondents who reported a good quarter
    
  • On-year (SQ8 to SQ12), pharmaceuticals and auto components reported growth in the share of respondents with positive sentiment
    
• Among service providers, 18% reported a good SQ12, higher than 7% in SQ11, similar to 19% in the same quarter a year ago (SQ8).
  
  • In SQ12, health care providers & services and logistics sectors had the highest share of respondents who reported a good quarter
    
  • On-year (SQ8 to SQ12) also, logistics and health care providers & services sectors reported an increase in the share of respondents with positive sentiment