Even as economic uncertainty continues, the number of corporates with optimistic view on India’s economic growth over the coming 12 months has come down, a survey said.
Even as economic uncertainty continues, the number of corporates with optimistic view on India’s economic growth over the coming 12 months has come down, a survey said. In terms of business optimism, India has been ranked fourth globally with only 64 per cent of corporates remaining upbeat, Grant Thornton’s International Business Report (IBR) said. In April-June 2018 period, India stood at the sixth rank with 78 per cent of the total respondents. Philippines lead the chart with 73 per cent respondents, followed by Vietnam (72 per cent) and Indonesia (66 per cent).
The budget 2019 has come out with several measures to propel growth as the Indian economy is undergoing a slowdown, along with weak consumption demand.
The major areas of concern mentioned in the report include government regulations, red tape and a shortage of finance are the key concerns for India’s economy, the report said.
The business optimism has fallen to a three-year level around the world, even as economic uncertainty remains elevated, the Grant Thornton report also said.
Optimism on employment India
The businesses in India are optimistic about rise in employment in the second tenure of Narendra Modi government.
India had slipped to the fifth position from the fourth in the second half of 2018 on revenue expectations, according to the IBR. On the selling prices and profitability expectation parameters, the country had fallen to eighth and fifth positions, from sixth and third, respectively.
The Grant Thornton report also said that global optimism has also come down to a three-year-low level and economic uncertainty remains elevated. “In tandem with the subdued economic optimism, India Inc’s dismal sentiments reflect in its expectations for an increase in revenue, selling prices and profitability,” said Grant Thornton India LLP Chief Executive Officer Vishesh C Chandiok.