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India slips to 7th position in business optimism ranking

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As per Grant Thornton’s International Business Report (IBR), India has slipped to 7th position in ‘business optimism’ index for the September 2017 quarter. This marks a drop by five places as compared to 2nd position in the previous three months.

About Grant Thornton International Business Report (IBR):

Grant Thornton International Business Report (IBR) is a business survey launched in 1992.

  • It provides insight into the economic and commercial issues affecting both listed and privately-held businesses.
  • Currently, it provides insight into the views and expectations of more than 10000 businesses across 37 countries.

Highlights of Grant Thornton’s Survey on Business Optimism

During the September 2017 quarter, Indian businesses have expressed low confidence over revenue expectations in the next 12 months. Grant Thornton's International Business Report

  • Confidence for profitability among Indian businesses has dropped to 54 per cent showing optimism as compared to 69 per cent in the last quarter. 
  • Drop in optimism is also evident in other parameters such as expectations of increase in selling prices and exports.
  • Drop in business optimism is being ascribed clear signs of lag in Indian economy. 
  • However, on parameter of increase in employment, Indian businesses have an optimistic view about increase in employment as 54 per cent respondents expressed the need to increase hiring in the next 12 months.
  • Even on parameters of investment in plant and machinery and Research & Development (R&D), Indian businesses continue to be optimistic.
  • In India, around 69% respondents consider regulations and red tape as the biggest growth constraint. 46% respondents also consider lack of Information and communications technology (ICT) infrastructure as a major growth constraint.
  • Across the world, business optimism remains relatively high at 49 per cent in the September quarter. 

‘Business Optimism’ Rankings – Top 5 Countries:

1 Indonesia
2 Finland
3 Netherlands
4 Philippines
5 Austria