New Delhi: Majority of senior finance executives in India feel that the country's macro-economic conditions are likely to either worsen or remain the same throughout this fiscal, indicating weak business sentiments, says a survey.
According to the Deloitte India 2012 CFO Survey, CFOs are concerned about India's macro-economic outlook and its impact on future industrial growth and organisational sustenance.
The survey said nearly half of the Indian CFOs expect further rise in prices, tapering of GDP growth and stagnation in industrial growth in 2012-13.
It also revealed that 43 percent of them view that political inefficiency is causing policy paralysis and hence arresting economic growth.
Moreover, 60 percent of the CFOs cited flawed regulatory policies, inflationary pricing and rising input cost as key deterrents to industrial growth.
"CFOs are looking forward to policies that would ensure long-term economic sustenance, spur consumer growth and bolster investor confidence," Deloitte Touche Tohmatsu India Senior Director Sanjoy Sen said, adding that the key challenges for organisations include decreasing consumer demand, fluctuating exchange rates and rising input costs.
The survey which covered 136 CFOs from listed and unlisted companies in India spanning across sectors further said in the wake of current economic downturn, 60 percent expect more companies would access foreign market to hedge risks.
A majority of CFOs share a common concern that the economic recovery is still hindered by concerns about consumer demand, squeezing margins, rising inflation and government inertia, among others.
The recent few downgrades by international credit rating agencies and slew of scams have also added to the concerns.
The future strategies that CFOs might adopt include access to foreign markets to hedge risks, deliver better consumer solutions, rationalise resource, streamline operations and ensure prudent investments on business projects which might help them the worsening global economic situation, the survey said.