For the first time in five years, India ceded its place as the most optimistic nation to Chile by a single percentage point, though remaining head and shoulder above its nearest pursuer Australia. The Grant Thornton International Business Report on opinions of privately held businesses (PHBs) ranked India high on optimism.
The survey of over 7,400 PHBs across 36 economies found return of optimism with Chile, India, Australia, Vietnam and Bazil the most optimistic, scoring over 70 per cent on the optimism index. The aggregate optimism around the world among PHBs gained 40 percentage points to +24 per cent from the –16 per cent last year.
India, at 84 per cent, lagged Chile by a single percentage point, followed by Australia at 79 per cent, Vietnam at 72 per cent and Brazil at 71 per cent. Supported by higher government spending, low interest rates and tax cuts along with resilient growth in Asia, growth in India has been robust. The outlook for 2010 is buoyant, said the report.
Most Indian PHBs believe that the economy will see a significant upturn only by the second half of 2010 or indeed only by early 2011. Kolkata was the most optimistic on condition of economy improving over the next 12 months followed by Mumbai and Delhi.
China clocked 60 per cent while optimism was lowest in Japan at –70 per cent.