Cumbersome ease of doing business at the grass-root level and high cost of doing business is affecting the animal spirits of the private sector, according to a survey by industry chamber CII released on Sunday. However, it said that significant recovery in corporate performance is expected in 2021-22 as the government's pro-growth initiatives and announcements have helped nurture the animal spirits of the sector, according to a CII survey.

"Responding to the question on what is affecting the animal spirits of the private sector, majority of the CEOs (51 per cent) indicated that ease of doing business was still cumbersome at the grass roots, followed by cost of doing business (other than capital cost) being high, as indicated by 32 per cent of the CEOs," CII said in a statement. About one-third of the CEOs indicated that the current capacity is still in excess of demand, it added.