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Informist, Tuesday, Jun. 17, 2025

 

NEW DELHI – Indian businesses are facing higher operational costs, regulatory burdens, and logistical constraints, a survey by the Associated Chambers of Commerce and Industry of India has revealed. Businesses, however, remained cautiously optimistic about the outlook because of new opportunities in manufacturing growth and digital transformation, according to the survey, which had insights from 150 companies across nearly 60 sectors.

 

"The survey underscores that while businesses are contending with rising operational costs, there exists a strong consensus on the need for regulatory and operational reforms," ASSOCHAM said in the findings of its Indian Economic Confidence Survey 2025. "With targeted reforms and proactive investments, there is significant potential for enhanced competitiveness, improved exports and a more robust growth trajectory in the coming years, especially since the economic fundamentals of the country are strong."

 

Survey respondents reported that overall cost of doing business has risen in the face of global uncertainties. As per the survey, 47% of the respondents noted a moderate increase in the cost of doing business, while 37% indicated a significant uptick.

Infrastructure cost, skilled labour, and cost of finance were some of the key drivers behind higher costs. Compliance and regulatory complexity also burdened exporters and domestic producers, ASSOCHAM said.

 

India's economic growth slowed down in 2024-25 (Apr-Mar) to 6.5?ter growing over 9% in two of the three years after the pandemic. For FY26, the Reserve Bank of India expects the GDP growth to remain at 6.5% amidst an uncertain global geopolitical and trade environment.

 

Businesses surveyed by ASSOCHAM said they were optimistic about the future if the government undertook targeted policy interventions. While nearly 15% of the respondents reported positive engagement with policy schemes like the production-linked incentive, a majority noted the need for broader market integration and support, ASSOCHAM said.

 

"Indian industry shows potential to contribute to India's economic growth. However, tapping into this potential will require targeted policy efforts, infrastructure development, and other related initiatives," ASSOCHAM said. "The current business outlook is cautiously optimistic and expects that reforms will yield significant improvements in the export ecosystem."

 

To strengthen the export ecosystem, firms said the government needs to undertake several regulatory reforms such as single window clearance system, lower cost of capital, simplified framework on goods and services tax, among others.

 

"These reforms can simplify compliance, improve ease of doing business, and ensure timely credit through schemes," ASSOCHAM said. "Enhancing digital infrastructure and encouraging skill development will make industries more competitive globally. In essence, structural reforms are crucial for boosting economic growth, generating employment, and improving export competitiveness."  End

 

Reported by Shubham Rana

Edited by Vandana Hingorani

 

 

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