India's Private Sector Slams Rising Operational Costs, Calls for Policy Reforms

New Delhi: Indian companies are facing rising operational costs, with skilled labor, infrastructure, and financing emerging as key concerns, according to the latest Indian Economic Confidence Survey conducted by ASSOCHAM.

The survey, which captured insights from 150 companies across nearly 60 sectors, including banking, IT & ITeS, manufacturing, and pharmaceuticals, found that over 80% of respondents reported a moderate to significant rise in the cost of doing business. Large firms and exporters were particularly vocal about cost burdens, with 76% of smaller firms (annual turnover ≤ ₹250 crore) flagging skilled labor as a top challenge.

Exporting companies also highlighted financing and logistics as persistent obstacles to competitiveness. With global uncertainties and domestic bottlenecks, companies are increasingly calling for policy reforms to ease cost pressures.

The industry body has recommended simplifying the GST framework, creating a single-window clearance mechanism, lowering capital costs, and improving legal and contract enforcement. These steps, they argue, are critical to helping India reach its goal of becoming a $5 trillion economy by 2030.

In addition to these measures, ASSOCHAM has also called for increased government support in R&D, innovation, and export competitiveness, alongside a focus on ESG compliance and curbing low-cost imports from China. Despite current challenges, the industry remains optimistic that targeted reforms can significantly boost India’s global trade position and long-term economic performance.

"We believe that with the right policies in place, we can mitigate these challenges and unlock the full potential of our economy," said Vinod Karia, President, ASSOCHAM. "We are confident that through concerted efforts, we can help India reach its ambitious growth targets."