India is projected to maintain a stable growth rate of 6.4-6.7% during the current financial year, with the potential to reach 7.0% in FY26, according to a recent survey by the Confederation of Indian Industry (CII).
Amidst global geopolitical challenges that have disrupted supply chains and hindered growth, India has emerged as a standout performer. The survey credits the country’s sound economic policies and public capex-led growth initiatives for reviving the economy.
Conducted over the past month, the pan-India CII survey found that 75% of respondents view the current economic climate as favorable for private investments. Chandrajit Banerjee, Director General of CII, noted that 70% of the firms surveyed plan to invest in FY26, suggesting a potential rise in private investments in the coming quarters.
Employment generation remains a central focus in policy discussions, with India’s vision of a “Viksit Bharat” by 2047 depending heavily on the creation of quality jobs. The survey reveals that 97% of firms are likely to increase employment in both 2024-25 and 2025-26. Notably, 79% of respondents reported hiring more employees over the past three years.
Regarding expected employment growth in FY25 and FY26, 97% of firms indicated an increase, with 42-46% anticipating a 10-20% rise in workforce numbers. Additionally, 31-36% of firms expect a growth of up to 10%.
Planned investments are projected to drive a 15-22% increase in direct employment across the manufacturing and services sectors in the next year. Indirect employment is also expected to rise by approximately 14% in these sectors.
Filling vacancies at senior management and supervisory levels takes between one to six months, while regular and contractual worker positions are filled more quickly, highlighting the need for skilled staff at higher levels.
Wage growth, which impacts personal consumption, is on the rise. A significant portion (40-45%) of firms reported a 10-20% increase in average wage growth for senior management, managerial/supervisory roles, and regular workers in FY25, continuing a trend observed in FY24.
The CII survey was based on a sample of 300 firms across various industry sizes (large, medium, and small).
