India Inc optimistic about economy; to hire aggressively
New Delhi: Indian businesses are among the most optimistic about their country's economic growth and are likely to hire more new workers than any other nation in the world, says a report.
According to the Grant Thornton International Business Report (IBR), a quarterly survey of more than 3,000 businesses in 44 countries, India is one of the top 10 countries that plan to increase hirings.
About 73 percent of Indian businesses plan to increase staff numbers, which is more than double the global average of 36 percent.
As many as 83 percent of Indian businesses are optimistic about their local economy (up from 78 percent three months earlier), and much higher than the global average of 50 percent.
Overall, Peru topped the list with 98 percent businesses optimistic about the economy, followed by Philippines (92 percent), the United Arab Emirates (92 percent), Mexico (84 percent) and India (83 percent).
Besides, about 88 percent of Indian businesses plan to increase employee wages at or above inflation level. This is well above the global average of 68 percent, and trailing only Argentina (97 percent), Botswana (94 percent), South Africa (94 percent) and Canada (89 percent).
"Though the survey shows an increase in optimism and demand, as well as willingness to invest, there's still an issue of uncertainty. For most businesses, while reason says 'hoard cash', their instinct says 'invest now' to get ahead of the competition," Grant Thornton in India National Managing Partner Vishesh Chandiok said.
He added: "If businesses think another crash is imminent, they will hoard cash to insulate their operations. However, the signs over the past quarter are that businesses especially in mature markets are going to invest in the future growth of their operations - this suggests they are feeling more confident about the outlook."
Globally, 27 percent of businesses are optimistic about the economic outlook, up from just 4 percent from the previous quarter, the report said.