Economic Times: October, 2015
Mumbai: Call it the China slowing down effect or early signs of optimism returning to Narendra Modi government's efforts to revive the economy, but India was ranked 2nd for business optimism.
India witnessed a surge in business optimism and was ranked 2nd in the July-September quarter according to a Grant Thornton's International Business Report. India was ranked fourth in the same report between April-June.
"This is based on the underlying strength of the economy, the consistent high growth rate, the entrepreneurial dynamism in being able to create new opportunities and businesses and the lower reliance on global trade based on significant domestic demand," said Harish HV, partner , India leadership team, Grant Thornton India.
According to the report as India Inc. grows more optimistic towards the country's economy, their confidence has also improved on the revenue front.
The survey shows that 86% Indian businesses are optimistic about an increase in revenue compared to 83% last quarter.
Indian businesses are also positive about profitability as it ranked 3rd in Q3 compared to 6th position in the last quarter with 69% respondents expecting a rise in the profits. However, we see a continuous fall in optimism on the rise of employment aspect with only 52% Indian businesses hoping for the same compared to 62% last quarter and 75% in Q1 2015.
"The slowdown in China is a major concern for the global economy at a time of stuttering growth and heightened uncertainty. The past three months have shown how reliant global growth has become on China - 20 years ago it was the top export destination for just two countries. Today that figure is 43," said Francesca Lagerberg, global leader for tax services at Grant Thornton.