India slips from top to 8th spot in business optimism

  • PTI, New Delhi
  • Updated: Jan 10, 2014 14:21 IST

India has slipped to the eighth rank from the top spot in terms of business optimism, with 69 of the corporates having a positive outlook on the economy and growth of operations in 2014, says a survey.

India has ranked eighth in the list which was topped by United Arab Emirates and Philippines, where 90 of businesses said they are optimistic about growth and the economy, followed by Peru at 84, according to Grant Thornton's International Business Report (IBR).

"India has slipped from topping the optimism charts in the IBR for five consecutive years to now falling to no 8 on the global tables," Grant Thornton India LLP National Managing Partner Vishesh Chandiok said.

IBR is a survey of both listed and privately held businesses. The data was drawn from interviews with 3,500 senior executives across industry sectors and was conducted between November and December 2013.

With strong sentiment for change in the recent state elections and decisive actions by the RBI/government in last few months, it's easy to see how medium to large businesses in India are more optimistic about the outlook for the economy in the coming months, Chandiok added.

"Whilst there is risk in expecting too much too soon from the current regime or any new regime, I certainly expect a dramatic turn in sentiment towards positivity from Q2 FY14-15," he said.

Moreover, the appointment of Raghuram Rajan as the governor of Reserve Bank of India seems to have steadied the economy and provided the much-needed confidence to Indian businesses, the report said.

According to the report, 90 of Indian businesses believe their revenues would rise in 2014 while 76 are most optimistic for increasing profitability this year. Around 35 of businesses are also hoping to witness a jump in exports.

Research and Development (R&D) initiatives are also likely to get a boost this year with 46 businesses betting big on R&D. About 65 businesses foresee a rise in employment in 2014.

"Despite optimism on several fronts, Indian businesses still feel the pinch with respect to low availability of finance," the report said, adding that 52 of companies believe shortage of finance is likely to hurt their business and derail their growth plans in 2014.

Other constraining factors include rising energy costs, regulations/red tape and lack of skilled workers.

From Around the Web
Sponsored by Revcontent

also read

Planning a vacation? Try home-stays instead of budget hotels
Show comments

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Chrome and Ad BlockPlus users

1.Press the ‘ABP’ icon in your toolbar at top right of this page

2. Click on ‘Enabled on this site’; this should now change to ‘Disabled on this site’


chrome



For Chrome and Ad Block users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don’t run on pages on this domain’ and then click ‘exclude’ on the pop up


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Mozilla and AdBlock Plus (ABP) users

1.Press the ‘ABP’ icon in your toolbar

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Internet Explorer and AdBlock Plus users

1.Press the ‘AdBlock Plus’ icon in your status bar at the bottom of the screen

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Safari and AdBlock users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don't run pages on this domain’ and then click 'exclude'


chrome