New Delhi: Buoyed by reform initiatives, majority of senior corporate executives are convinced that the current regulatory environment is supportive of business growth in the country, according to an E&Y survey.
Global consultancy Ernst & Young's survey also found that around 86 percent of the executives consider domestic economy to be stable or improving while investing capital is the priority for about 40 percent of the respondents.
"Nearly 67 percent of them are of the opinion that the current regulatory environment is supportive of business growth initiatives in India," as per E&Y Capital Confidence Barometer.
The readings come at a time when the government is making efforts to boost economic growth, which slumped to five percent last fiscal.
Going by the report, the greatest confidence booster was allowing Foreign Direct Investment (FDI) in retail chains and air carriers. The government allowed 51 percent FDI in multi-brand retail and 49 percent in civil aviation.
Besides, the setting up of Cabinet Committee on Investment to fast track big-ticket infrastructure projects and partial de-regulation of diesel prices, have also boosted the overall confidence, it said.
The survey, which covered over 70 respondents from India, said organic growth remains a focus area for about 48 percent of the executives. The outlook is for April-October 2013 period.
"Another critical sign of a positive attitude toward the domestic economy is that respondents are extremely positive about the regulations implemented in the country," it said.
About 42 percent of the Indian respondents said the global economy is improving whereas the same sentiment was expressed by just 21 percent participants when the survey was conducted in October 2012.
"India is witnessing a high level of confidence in its economic growth. More than 50 percent of the Indian respondents (as compared to 27 percent six months ago) were of the opinion that the domestic economy is recovering.
"Notably, the percentage of respondents with negative views about the Indian economy recorded a considerable decline to 14 percent, as compared to 46 percent in October 2012," the report said.
Compared to their global counterparts, Indian respondents are more focused on cost reduction and improvement of operational efficiency.
"Organic growth continues to be important for executives... The continued focus on organic growth indicates that confidence in the economy's long-term growth remains intact," it said.