The survey included insights from 150 firms spanning nearly 60 sectors, such as banking, IT & ITeS, manufacturing, and pharmaceuticals, revealing that over 80% of participants reported a moderate to considerable increase in the cost of operations.
Larger companies and exporters were especially outspoken about financial pressures, with 76% of smaller firms (annual turnover ≤ ₹250 crore) identifying skilled labor as a primary challenge. Exporting businesses also pointed out that financing and logistics serve as ongoing hurdles to their competitiveness.
“Amid global uncertainties and domestic challenges, companies are increasingly advocating for policy reforms to alleviate cost burdens,” ASSOCHAM stated in a release accompanying the report.
Policy changes recommended
Industry leaders have highlighted key suggestions, including streamlining the GST framework, establishing a single-window clearance system, reducing capital costs, and enhancing legal and contract enforcement. They contend that these actions are essential for India to achieve its goal of becoming a $5 trillion economy by 2030.
The report further emphasized the need for enhanced government support in R&D, innovation, and export competitiveness, along with a focus on ESG compliance and reducing low-cost imports from China.
In spite of the current challenges, the industry expresses optimism that targeted reforms can significantly enhance India’s position in global trade and long-term economic performance.
