However, the companies were buoyed to regain some control over pricing power. Nearly 27 per cent respondents expect an increase in the selling price of their products over the next six months as compared to 21 per cent stating the same in the previous round and 14 per cent a year back. The statement said improved economic conditions and greater pricing power is likely to drive profits of corporate India over the next two quarters. The percentage of participants citing higher profits over the next six months increased to 36 per cent in the latest survey from 33 per cent respondents stating likewise in the previous round.

Further, the outlook on employment and exports also reported a discernible improvement. Nearly 35 per cent respondents were optimistic about better hiring prospects over the next two quarters (up from 22 per cent stating the same in the previous round). Export prospects were also reported to be better in the current round with 41 per cent respondents indicating higher outbound shipments. The corresponding number in the previous round was 27 percent.