Services and Infrastructure Outlook Survey for Q3:2020-21

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Published on February 05, 2021

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Services and Infrastructure Outlook Survey for Q3:2020-21

Today, the Reserve Bank released the results of 27th round of its quarterly Services and Infrastructure Outlook Survey (SIOS). This forward-looking survey, being conducted since Q1:2014-15, captures qualitative assessment and expectations of Indian companies in the services and infrastructure sectors on a set of business parameters relating to demand conditions, price situation and other business conditions. 526 companies gave their assessment for Q3:2020-21 and expectations for Q4:2020-21 in the latest round of the survey, which was conducted during October-December 2020.¹

Highlights:

A. Services Sector

Assessment for Q3:2020-21

Services sector firms assessed strong revival in turnover during Q3:2020-21 (Chart 1 and Table A).
All major business parameters, except input costs, recorded significant improvement in Q3:2020-21.
Respondents assessed subdued selling prices and profit margins, though their sentiments improved over the previous quarter.
Sentiments on overall business situation returned to optimism.

Expectations for Q4:2020-21

Services sector companies expect further improvement in turnover in Q4:2020-21 (Chart 1).
Outlook on major business parameters, except input costs, improved further.
Companies expect rise in both selling prices and input costs, resulting in marginal gain in profit margins.

B. Infrastructure Sector

Assessment for Q3:2020-21

Infrastructure companies gauged expansion in turnover, where the net sentiments turned positive after two quarters (Chart 2 and Table B).
Major business parameters like turnover, employment, selling price and profit margin are assessed to have improved in Q3:2020-21 resulting in overall improvement in business situation.

Expectations for Q4:2020-21

The turnover of infrastructure companies is expected to improve further in Q4:2020-21 (Chart 2); other major business parameters are also expected to improve.
Employment conditions are expected to turn positive for both full-time and part-time employees.

Summary of Net Responses² on Survey Parameters
Table A: Services Sector
(per cent)
Parameters	Assessment period		Expectations period
Parameters	Q2:20-21	Q3:20-21	Q3:20-21	Q4:20-21
Overall Business Situation	-4.7	30.9	27.0	44.5
Turnover	-10.7	23.7	21.2	38.4
Full-time Employees	-8.8	9.5	4.0	15.4
Part-time Employees	-15.4	-4.3	-3.8	6.6
Availability of Finance	-1.1	10.7	5.3	16.9
Cost of Finance	0.0	-4.6	-2.2	-8.5
Salary & Wages	-0.3	-12.0	-9.5	-20.3
Cost of Inputs	-26.2	-28.0	-24.2	-29.2
Selling Price	-12.6	-9.9	-5.4	0.3
Profit Margin	-29.5	-11.1	-6.3	1.4
Inventories	-5.9	6.0	1.3	12.3
Technical/Service Capacity	5.6	10.7	9.6	13.1
Physical Investment	-1.4	5.7	1.1	8.7

Table B: Infrastructure Sector
(per cent)
Parameters	Assessment period		Expectations period
Parameters	Q2:20-21	Q3:20-21	Q3:20-21	Q4:20-21
Overall Business Situation	-11.0	16.2	14.8	37.7
Turnover	-17.2	3.5	17.5	31.9
Full-time Employees	-26.0	-14.2	-8.0	2.9
Part-time Employees	-19.2	-5.8	-2.4	3.0
Availability of Finance	-10.4	-0.7	1.6	10.1
Cost of Finance	-12.2	-13.8	-21.1	-17.4
Salary & Wages	11.2	-8.6	-17.7	-16.7
Cost of Inputs	-31.9	-33.1	-42.7	-40.7
Selling Price	-18.8	-7.1	-10.0	3.2
Profit Margin	-41.9	-23.4	-17.4	-3.6
Inventories	0.0	0.8	5.7	6.9
Technical/Service Capacity	-3.7	1.7	1.9	5.0
Physical Investment	-2.9	0.9	7.8	7.0

Note: Please see the excel file for time series data

Services Sector

Table S1: Assessment and Expectation for Overall Business Situation
(Percentage responses)^@
Quarter	Assessment				Expectation
Quarter	Better	No Change	Worse	Net response^#	Better	No Change	Worse	Net response
Q3:19-20	32.8	51.4	15.8	17.0	47.0	39.0	13.9	33.1
Q4:19-20	33.0	52.6	14.3	18.7	45.2	45.2	9.6	35.5
Q1:20-21	7.4	31.3	61.3	-53.9	43.8	45.8	10.4	33.4
Q2:20-21	26.4	42.4	31.1	-4.7	29.0	43.9	27.1	1.9
Q3:20-21	43.2	44.5	12.3	30.9	40.3	46.3	13.4	27.0
Q4:20-21					50.4	43.7	5.9	44.5
‘Increase’ in Overall business situation is optimistic. @: Due to rounding off percentage may not add up to 100. #: Net Response (NR) is the difference of percentage of the respondents reporting optimism and that reporting pessimism. The range is -100 to 100. Any value greater than zero indicates expansion/ optimism and any value less than zero indicates contraction/ pessimism.

Table S2: Assessment and Expectation for Turnover
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	40.3	40.3	19.4	20.9	50.5	35.4	14.0	36.5
Q4:19-20	41.6	38.8	19.7	21.9	48.1	40.9	11.0	37.1
Q1:20-21	9.0	23.9	67.1	-58.1	46.6	39.1	14.3	32.2
Q2:20-21	28.0	33.2	38.7	-10.7	30.4	33.9	35.8	-5.4
Q3:20-21	43.7	36.3	20.0	23.7	40.5	40.2	19.3	21.2
Q4:20-21					48.6	41.1	10.3	38.4
‘Increase’ in Turnover is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S3: Assessment and Expectation for Full-time Employees
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	26.0	57.7	16.3	9.7	26.4	66.2	7.4	19.0
Q4:19-20	30.3	56.9	12.8	17.5	27.4	63.5	9.1	18.3
Q1:20-21	11.6	63.5	24.8	-13.2	28.3	62.8	8.9	19.4
Q2:20-21	15.2	60.9	24.0	-8.8	13.4	68.7	17.9	-4.6
Q3:20-21	24.9	59.8	15.3	9.5	17.0	70.0	13.0	4.0
Q4:20-21					22.9	69.5	7.5	15.4
‘Increase’ in Full-time Employees is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S4: Assessment and Expectation for Part-time Employees
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	12.9	70.6	16.5	-3.6	12.9	77.1	10.0	3.0
Q4:19-20	12.1	75.6	12.4	-0.3	14.7	72.3	13.1	1.6
Q1:20-21	4.5	62.9	32.6	-28.1	15.4	74.1	10.6	4.8
Q2:20-21	8.3	68.1	23.6	-15.4	8.5	70.4	21.2	-12.7
Q3:20-21	10.0	75.7	14.3	-4.3	9.5	77.2	13.3	-3.8
Q4:20-21					15.0	76.7	8.3	6.6
‘Increase’ in Part-time Employees is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S5: Assessment and Expectation for Availability of Finance
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Improve	No Change	Worsen	Net response	Improve	No Change	Worsen	Net response
Q3:19-20	17.4	70.1	12.5	4.9	27.8	64.6	7.6	20.2
Q4:19-20	21.5	66.8	11.7	9.8	22.9	68.0	9.1	13.9
Q1:20-21	9.7	66.3	23.9	-14.2	24.0	65.9	10.1	13.9
Q2:20-21	15.4	68.0	16.6	-1.1	15.9	66.6	17.5	-1.7
Q3:20-21	21.3	68.0	10.7	10.7	17.7	69.9	12.4	5.3
Q4:20-21					25.5	65.9	8.6	16.9
‘Improve’ in Availability of Finance is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S6: Assessment and Expectation for Cost of Finance
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	16.5	74.3	9.2	-7.3	16.3	71.2	12.5	-3.8
Q4:19-20	14.9	75.7	9.5	-5.4	15.3	75.7	9.0	-6.3
Q1:20-21	21.4	62.9	15.7	-5.7	13.4	76.6	10.0	-3.4
Q2:20-21	15.1	69.7	15.1	0.0	18.1	68.9	13.0	-5.1
Q3:20-21	16.8	70.9	12.3	-4.6	13.5	75.1	11.4	-2.2
Q4:20-21					17.0	74.6	8.5	-8.5
‘Decrease’ in Cost of Finance is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S7: Assessment and Expectation for Salary/Wages
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	35.1	61.9	3.0	-32.1	34.8	61.0	4.3	-30.5
Q4:19-20	33.6	61.9	4.4	-29.2	31.2	66.8	2.1	-29.1
Q1:20-21	13.2	61.2	25.6	12.3	39.2	57.8	3.0	-36.2
Q2:20-21	16.9	66.4	16.7	-0.3	15.8	66.2	18.0	2.3
Q3:20-21	23.7	64.5	11.7	-12.0	19.0	71.6	9.5	-9.5
Q4:20-21					26.4	67.6	6.0	-20.3
‘Decrease’ in Salary/Wages is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S8: Assessment and Expectation for Cost of Inputs
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	35.8	60.2	4.0	-31.7	33.6	64.1	2.3	-31.3
Q4:19-20	36.2	56.9	6.9	-29.3	31.7	63.9	4.5	-27.2
Q1:20-21	24.5	58.8	16.7	-7.8	32.6	62.7	4.7	-28.0
Q2:20-21	34.6	56.9	8.4	-26.2	25.8	63.6	10.6	-15.2
Q3:20-21	33.2	61.5	5.2	-28.0	30.6	63.1	6.4	-24.2
Q4:20-21					34.0	61.1	4.8	-29.2
‘Decrease’ in Cost of Inputs is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S9: Assessment and Expectation for Selling Price
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	9.8	76.3	13.9	-4.0	12.7	78.8	8.6	4.1
Q4:19-20	11.1	77.8	11.1	0.0	11.7	79.2	9.0	2.7
Q1:20-21	3.0	71.2	25.8	-22.9	12.5	76.0	11.4	1.1
Q2:20-21	6.1	75.1	18.8	-12.6	6.1	75.4	18.6	-12.5
Q3:20-21	7.0	76.0	16.9	-9.9	7.8	79.1	13.2	-5.4
Q4:20-21					11.3	77.7	11.0	0.3
‘Increase’ in Selling Price is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S10: Assessment and Expectation for Profit Margin
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	19.2	52.9	27.9	-8.7	27.2	53.4	19.4	7.8
Q4:19-20	19.4	56.0	24.6	-5.2	26.4	57.0	16.6	9.8
Q1:20-21	3.5	37.7	58.7	-55.2	23.0	59.7	17.3	5.7
Q2:20-21	12.4	45.8	41.9	-29.5	13.4	48.5	38.1	-24.8
Q3:20-21	19.0	50.8	30.2	-11.1	20.5	52.7	26.8	-6.3
Q4:20-21					21.6	58.3	20.2	1.4
‘Increase’ in Profit Margin is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S11: Assessment and Expectation for Inventories
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	15.1	74.2	10.7	4.4	18.1	73.1	8.8	9.2
Q4:19-20	16.7	72.2	11.0	5.7	13.8	78.2	8.0	5.7
Q1:20-21	13.5	63.5	23.0	-9.6	16.9	73.9	9.2	7.7
Q2:20-21	14.4	65.3	20.3	-5.9	14.5	68.8	16.7	-2.2
Q3:20-21	17.9	70.2	11.9	6.0	15.9	69.6	14.6	1.3
Q4:20-21					20.6	71.2	8.3	12.3
‘Increase’ in Inventories is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S12: Assessment and Expectation for Technical/Service Capacity
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	18.2	80.6	1.2	17.0	19.6	78.3	2.1	17.4
Q4:19-20	16.8	81.0	2.2	14.6	18.6	80.1	1.3	17.3
Q1:20-21	9.2	79.2	11.5	-2.3	16.8	81.3	2.0	14.8
Q2:20-21	12.5	80.6	6.9	5.6	13.9	78.6	7.5	6.3
Q3:20-21	14.6	81.5	3.9	10.7	14.8	80.1	5.2	9.6
Q4:20-21					16.8	79.4	3.8	13.1
‘Increase’ in Technical/Service Capacity is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S13: Assessment and Expectation for Physical Investment
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	18.3	79.5	2.2	16.1	18.2	77.8	4.0	14.2
Q4:19-20	18.5	77.4	4.2	14.3	18.0	80.1	1.9	16.1
Q1:20-21	11.7	72.8	15.6	-3.9	15.4	79.5	5.1	10.2
Q2:20-21	8.0	82.7	9.3	-1.4	13.9	75.3	10.8	3.2
Q3:20-21	13.2	79.4	7.4	5.7	8.5	84.0	7.5	1.1
Q4:20-21					14.0	80.8	5.2	8.7
‘Increase’ in Physical Investment is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Infrastructure Sector

Table I1: Assessment and Expectation for Overall Business Situation
(Percentage responses)^@
Quarter	Assessment				Expectation
Quarter	Better	No Change	Worse	Net response^#	Better	No Change	Worse	Net response
Q3:19-20	33.1	50.3	16.6	16.6	42.1	43.2	14.7	27.4
Q4:19-20	34.6	47.7	17.7	16.9	49.7	39.9	10.5	39.2
Q1:20-21	13.3	28.6	58.1	-44.8	50.8	40.0	9.2	41.5
Q2:20-21	25.2	38.6	36.2	-11.0	29.5	46.7	23.8	5.7
Q3:20-21	35.2	45.8	19.0	16.2	34.4	46.1	19.5	14.8
Q4:20-21					47.1	43.5	9.4	37.7
‘Increase’ in Overall business situation is optimistic. @: Due to rounding off percentage may not add up to 100. #: Net Response (NR) is the difference of percentage of the respondents reporting optimism and that reporting pessimism. The range is -100 to 100. Any value greater than zero indicates expansion/ optimism and any value less than zero indicates contraction/ pessimism.

Table I2: Assessment and Expectation for Turnover
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	36.3	40.8	22.9	13.4	47.3	37.6	15.1	32.3
Q4:19-20	34.4	45.3	20.3	14.1	45.5	42.2	12.3	33.1
Q1:20-21	9.7	29.1	61.2	-51.5	42.2	47.7	10.2	32.0
Q2:20-21	23.4	35.9	40.6	-17.2	24.5	45.1	30.4	-5.9
Q3:20-21	29.8	44.0	26.2	3.5	38.1	41.3	20.6	17.5
Q4:20-21					41.8	48.2	9.9	31.9
‘Increase’ in Turnover is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I3: Assessment and Expectation for Full-time Employees
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	14.1	67.3	18.6	-4.5	24.2	65.3	10.5	13.7
Q4:19-20	16.2	68.5	15.4	0.8	16.4	73.7	9.9	6.6
Q1:20-21	4.8	68.3	26.9	-22.1	20.5	70.1	9.4	11.0
Q2:20-21	3.9	66.1	29.9	-26.0	7.7	70.2	22.1	-14.4
Q3:20-21	7.1	71.6	21.3	-14.2	8.8	74.4	16.8	-8.0
Q4:20-21					14.3	74.3	11.4	2.9
‘Increase’ in Full-time Employees is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I4: Assessment and Expectation for Part-time Employees
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	8.6	82.8	8.6	0.0	16.1	71.0	12.9	3.2
Q4:19-20	5.5	85.0	9.4	-3.9	10.7	80.5	8.7	2.0
Q1:20-21	3.9	63.1	33.0	-29.1	10.2	81.3	8.6	1.6
Q2:20-21	5.6	69.6	24.8	-19.2	9.8	71.6	18.6	-8.8
Q3:20-21	8.7	76.8	14.5	-5.8	10.6	76.4	13.0	-2.4
Q4:20-21					12.6	77.8	9.6	3.0
‘Increase’ in Part-time Employees is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I5: Assessment and Expectation for Availability of Finance
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Improve	No Change	Worsen	Net response	Improve	No Change	Worsen	Net response
Q3:19-20	14.9	66.2	18.8	-3.9	25.0	56.5	18.5	6.5
Q4:19-20	14.5	69.4	16.1	-1.6	22.4	68.4	9.2	13.2
Q1:20-21	7.0	64.0	29.0	-22.0	25.2	64.2	10.6	14.6
Q2:20-21	14.4	60.8	24.8	-10.4	14.7	66.7	18.6	-3.9
Q3:20-21	18.6	62.1	19.3	-0.7	21.8	58.1	20.2	1.6
Q4:20-21					23.0	64.0	12.9	10.1
‘Improve’ in Availability of Finance is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I6: Assessment and Expectation for Cost of Finance
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	33.1	57.8	9.1	-24.0	23.1	58.2	18.7	-4.4
Q4:19-20	27.4	63.7	8.9	-18.5	24.3	66.2	9.5	-14.9
Q1:20-21	29.1	56.3	14.6	-14.6	23.2	66.4	10.4	-12.8
Q2:20-21	24.4	63.4	12.2	-12.2	28.7	59.4	11.9	-16.8
Q3:20-21	20.3	73.2	6.5	-13.8	27.6	65.9	6.5	-21.1
Q4:20-21					24.6	68.1	7.2	-17.4
‘Decrease’ in Cost of Finance is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I7: Assessment and Expectation for Salary/Wages
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	28.4	62.6	9.0	-19.4	30.4	63.0	6.5	-23.9
Q4:19-20	25.0	67.2	7.8	-17.2	28.3	67.8	3.9	-24.3
Q1:20-21	18.6	59.8	21.6	2.9	37.5	61.7	0.8	-36.7
Q2:20-21	12.0	64.8	23.2	11.2	21.8	60.4	17.8	-4.0
Q3:20-21	19.3	70.0	10.7	-8.6	23.4	71.0	5.6	-17.7
Q4:20-21					22.5	71.7	5.8	-16.7
‘Decrease’ in Salary/Wages is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I8: Assessment and Expectation for Cost of Inputs
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	38.9	58.4	2.7	-36.2	35.2	60.2	4.5	-30.7
Q4:19-20	39.3	55.7	4.9	-34.4	37.1	58.7	4.2	-32.9
Q1:20-21	31.6	58.2	10.2	-21.4	36.1	58.8	5.0	-31.1
Q2:20-21	36.1	59.7	4.2	-31.9	31.6	62.2	6.1	-25.5
Q3:20-21	38.2	56.6	5.1	-33.1	44.4	53.8	1.7	-42.7
Q4:20-21					42.2	56.3	1.5	-40.7
‘Decrease’ in Cost of Inputs is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I9: Assessment and Expectation for Selling Price
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	7.6	78.0	14.4	-6.8	19.7	65.8	14.5	5.3
Q4:19-20	8.0	74.3	17.7	-9.7	12.5	78.9	8.6	3.9
Q1:20-21	7.4	66.0	26.6	-19.1	10.8	74.8	14.4	-3.6
Q2:20-21	8.9	63.4	27.7	-18.8	7.5	68.8	23.7	-16.1
Q3:20-21	8.7	75.4	15.9	-7.1	10.9	68.2	20.9	-10.0
Q4:20-21					15.2	72.8	12.0	3.2
‘Increase’ in Selling Price is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I10: Assessment and Expectation for Profit Margin
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	11.3	60.7	28.0	-16.7	18.9	55.6	25.6	-6.7
Q4:19-20	11.6	56.2	32.2	-20.7	17.4	59.0	23.6	-6.3
Q1:20-21	2.9	33.0	64.1	-61.2	18.6	58.5	22.9	-4.2
Q2:20-21	7.3	43.5	49.2	-41.9	11.9	44.6	43.6	-31.7
Q3:20-21	11.3	53.9	34.8	-23.4	17.4	47.9	34.7	-17.4
Q4:20-21					21.0	54.3	24.6	-3.6
‘Increase’ in Profit Margin is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I11: Assessment and Expectation for Inventories
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	17.0	74.1	8.8	8.2	18.6	68.6	12.8	5.8
Q4:19-20	15.8	71.7	12.5	3.3	17.5	72.0	10.5	7.0
Q1:20-21	17.0	68.0	15.0	2.0	16.9	73.7	9.3	7.6
Q2:20-21	12.4	75.2	12.4	0.0	14.3	72.4	13.3	1.0
Q3:20-21	12.9	75.0	12.1	0.8	18.0	69.7	12.3	5.7
Q4:20-21					16.8	73.3	9.9	6.9
‘Increase’ in Inventories is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I12: Assessment and Expectation for Technical/Service Capacity
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	18.0	78.1	3.9	14.1	20.3	77.0	2.7	17.6
Q4:19-20	14.0	82.2	3.7	10.3	16.7	80.2	3.2	13.5
Q1:20-21	4.4	79.1	16.5	-12.1	14.7	82.6	2.8	11.9
Q2:20-21	5.6	85.2	9.3	-3.7	8.8	80.2	11.0	-2.2
Q3:20-21	9.2	83.3	7.5	1.7	9.5	82.9	7.6	1.9
Q4:20-21					10.0	85.0	5.0	5.0
‘Increase’ in Technical/Service Capacity is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I13: Assessment and Expectation for Physical Investment
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q3:19-20	18.9	75.6	5.5	13.4	25.3	66.7	8.0	17.3
Q4:19-20	16.8	79.4	3.7	13.1	21.1	74.0	4.9	16.3
Q1:20-21	6.7	71.9	21.3	-14.6	20.2	76.9	2.9	17.3
Q2:20-21	10.7	75.7	13.6	-2.9	9.1	72.7	18.2	-9.1
Q3:20-21	9.4	82.1	8.5	0.9	17.6	72.5	9.8	7.8
Q4:20-21					14.8	77.4	7.8	7.0
‘Increase’ in Physical Investment is optimistic. Footnotes @ and # given in Table 1 are applicable here.

¹ The background and methodological aspects of the survey are documented in the published article “Services and Infrastructure Outlook Survey – Recent Trends” in December 2020 issue of RBI bulletin (Weblink: /en/web/rbi/-/publications/rbi-bulletin/services-and-infrastructure-outlook-survey-recent-trends-19962).

The survey results reflect the views of the respondents, which are not necessarily shared by the Reserve Bank of India.

² Net Response (NR) is the difference between the percentage of respondents reporting optimism and those reporting pessimism. It ranges between -100 to 100. Positive value indicates expansion/optimism and negative value indicates contraction/pessimism. In other words, NR = (I – D); where, I is the percentage response of ‘Increase/optimism’, D is the percentage response of ‘Decrease/pessimism’ and E is the percentage response as ‘no change/ equal’ (i.e., I+D+E=100). For example, increase in turnover is optimism whereas decrease in cost of inputs is optimism.