Both global and domestic factors have dented the level of confidence of Corporate India, which has hit a new 12-month low in the quarter ending June 2011, Ficci said.
The Overall Business Confidence Index value has come down to 51.6 in the first quarter of this fiscal compared to 63.7 during the last quarter of 2010-11, it said.
At the global level, the US and the euro-zone are reeling under fiscal crisis. There are growing apprehensions about the world economy entering into another recession, which would have a bearing on the performance of the Indian economy both through trade and funds flows channels.
At the domestic level, it added that the persistent contractionary monetary policy stance of RBI is now clearly taking a toll on the performance of the industrial sector in particular and the economy in general.
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