Corporate India’s confidence level has declined in the second quarter of the current fiscal on account of unfavourable business environment at home as well as globally, says a survey.
According to the NCAER-MasterCard Worldwide Index of Business Confidence, India Inc level in the July-September quarter declined to 125.4 from 126.6 in the previous quarter.
A number of indicators support this weak business environment — the domestic economy is growing at a significantly lower pace than its potential and the world economic growth remains constrained with weak recovery in the advanced economies.
“Moderation in economic growth along with high and stubborn inflation appears to be the main concern in business operation,” the report said.
Other issues dampening the business sentiment are elevated interest rates, weak global economy, widening fiscal deficit and policy stagnation.