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India's economic confidence drops; ranks 6th globally: Survey

Last Updated: Wednesday, May 15, 2013 - 15:35

New Delhi: India's economic confidence dropped last month due to plethora of corruption allegations against the Union government ministers and the country is now the sixth most economically confident country in the world after Saudi Arabia, Sweden, China, Canada and Germany.

According to a survey by global research firm Ipsos, India's economic confidence dropped by 2 points to 63 percent in the month of April, 2013 compared to the month of March, 2013.

The drop in economic confidence of the country was despite the fact the there has been a continuous decline in inflation rate and upbeat investor confidence, Ipsos said.

"Frequent allegations of corruption is revitalising negative public perception among Indians about the state of its economy despite indications that inflation is gradually subsiding and investor are increasing becoming confident about business opportunities in India," Ipsos India CEO Mick Gordon said.

The global assessment of national economies surveyed in 24 countries slipped slightly this month as 36 percent of global citizens rate their national economies to be 'good', down 1 percent from last month.

Saudi Arabia (80 percent) continued to lead the world on national economic assessment, despite seeing a downward trend over the past quarter. It is followed by Sweden (73 percent), China (72 percent), Canada (65 percent), Germany (64 percent) and India (63 percent).

Meanwhile, four in 10 Indian citizens (41 percent) believe that their local economy which impacts their personal finance is good, a marginal rise of 2 points and an optimistic 47 percent people expect that the economy in their local area will be stronger in next six months.

Gordon further said that Indian economy is expected to grow at around 6 percent in 2013-14 on account of robust domestic demand, strong savings and growth in private investment rate.

"With food prices expected to remain stable, manufacturing prices weak due to slow growth, and commodity prices stable, inflation is expected to be on a broad downtrend for the next six months and this, we believe, opens up room for more rate cuts by RBI to propel growth," Gordon added.

The online Ipsos Economic Pulse of the World survey was conducted among 18,331 people in 24 countries.


First Published: Wednesday, May 15, 2013 - 15:33
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