New Delhi: India's economic confidence improved marginally during the month of May on the prospect of good monsoon, says a survey by global research firm Ipsos.
The survey titled 'Ipsos Economic Pulse of the World' noted that India's economic confidence rose by three points to 66 percent in May 2013 compared to the preceding month making it the fourth most economically confident country in the world after Saudi Arabia, Sweden and Germany.
"In India monsoon is key to determine agricultural output, inflation, consumer spending and overall economic growth. Normal rainfall signals growth and prosperity, as higher farm output would rein in food prices and help the government to take steps to cut the fiscal deficit and farm subsidies," Ipsos India CEO Mick Gordon said.
"A stronger economic outlook can lift sentiment in equity markets, mainly of companies selling products in rural areas, including consumer goods and automobiles," he added.
Agriculture sector, which accounts for 17-20 percent of the GDP, is largely dependent on the rains. So a fall in agriculture "has a ripple effect on the economy".
"With 75 percent of Indians directly or indirectly dependent on agriculture a good monsoon will boost the output of several commodities, reducing the burden on imports," the survey noted.
The global assessment of national economies surveyed in 24 countries remains consistent in May as 36 percent of global citizens rate their national economies to be 'good'.
Saudi Arabia (80 percent) continued to lead the world on national economic assessment. It is followed by Sweden (70 percent), Germany (67 percent), India (66 percent) and China (64 percent).
Meanwhile, 36 percent Indian citizens surveyed believe that their local economy which impacts their personal finance is good, a sharp drop of five points and an optimistic 45 percent people expect that the economy in their local area would be stronger in next six months.
The survey was conducted among more than 18,000 people in 24 countries.