India Inc is confident about fundamentals of the economy which is evident in the business confidence index of domestic firms remaining well above the global average despite the lingering slowdown.
According to a survey, business confidence in the country has dropped from 137 points in April to 129 in September, but still well above the global average of 113 points, while globally it risen by 5 points to 109 in mature economies, and had dropped 9 points to 117 in emerging economies.
The survey also says despite the slowdown, India Inc will focus on staff retention over the next 12 months to optimise business processes and gain maximum advantage from existing assets without compromising on expansion plans.
The survey, done by Regus--a Belgium-based flexi-workplace solutions provider--carried out among over 20,000 senior executives across 95 countries says domestic firms reporting revenue growth have increased to 66 per cent from 63, while those reporting profit growth have been flat at 54 per cent.
Against a steep fall in the index in the country, global business confidence remains steady with mature economies showing better confidence and emerging ones tempering their outlook somewhat. Globally, the index has dropped by just 1 point to 113 in September from 114 in April.
Overall, the index shows that the huge gap in outlook between the mature and emerging economies is narrowing. Confidence levels have risen by 5 points to 109 in mature economies, while there has been a drop of 9 points to 117 in emerging countries.
The survey also finds that as many as 49 per cent of the respondents reported improved staff retention, and 24 per cent reported higher return on investment on marketing and advertising.
Another key finding of the survey is across the markets, companies are confident of a sustainable future, by focusing on efficiency initiatives.