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'71% businesses in India optimistic about economy'

Last Updated: Thursday, January 3, 2013 - 18:02

New Delhi: Majority of businesses in India are optimistic about the domestic economy and hopes for a strong start in 2013, says a survey.

According to the Grant Thornton International Business Report (IBR), 71 percent of businesses in India indicated optimism for their economy, well ahead of the global average which stood at just 4 percent.

"Global economic scenario and certain inherent domestic risks notwithstanding , the Indian economy, on the back of positive measures such as policy changes, mega project clearances, regulation implementation and anticipated interest rate reduction is poised to grow at an accelerated growth trajectory," Grant Thornton India Partner Munesh Khanna said.

The survey further said increased revenue is the key indicator for increased optimism (85 percent) among Indian businesses followed by employment opportunities (84 percent) and profitability (71 percent).

The IBR report further said that global business optimism stands at just 4 percent heading into the New Year.

"This halts a rally in confidence seen in the first half of 2012, when global business optimism reached 23 per cent, and brings it nearer to the zero percent level observed this time last year," Grant Thornton said.

Economic uncertainty caused by concerns over the United States 'fiscal cliff' and ongoing fears over the long-term viability of eurozone is dampening growth prospects, the survey which covered 3,200 business leaders in 44 economies said.

United Arab emirates tops the business optimism league table, wherein 88 percent of businesses indicated optimism for their economy, followed by Peru (86 percent), Gorgia (84 percent), Chile (82 percent), Mexico (78 percent), Brazil (77 percent), Philippines (72 percent), India (71 percent) and Norway (60 percent).

Meanwhile, business optimism in the emerging markets of Latin America remained relatively stable over the last year, and actually increased to 69 percent in Q4, up from 61 percent this time last year.

Business optimism in the BRIC economies increased to 39 percent from 34 percent, while Asia Pacific (excluding Japan) has seen a rise from 23 percent to 28 percent over the same period.


First Published: Thursday, January 3, 2013 - 17:14
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