| Date: |
15-01-2016 |
| Subject: |
Indian businesses are most optimistic about economic recovery in 2016: Grant Thornton Survey |
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MUMBAI: Indian businesses are the most optimistic about the economic recovery in 2016. Stand taken up by the pro-reforms government, recent policy announcements and regulatory changes have resulted in increased confidence of the businesses. India has retained its #1 ranking again in the 4th quarter of 2015, a trend that was seen in the corresponding period in the year 2014 as well.
According to the Grant Thornton International Business Report (IBR) - a quarterly global survey of 2,580 business leaders across 36 economies, 89 percent of the businesses have shown confidence in the stable government and expect economic recovery in the last quarter of 2015. India was followed by Ireland and Philippines with 88 and 84 percent respectively.
The optimism, however, suffered a decline in the last few quarters due to slow growth of core sectors. The level of optimism has been continuously increasing with the second quarter witnessing 85 percent businesses expecting economic recovery. This was followed by 87 percent businesses indicating economic recovery in the third quarter.
The stability of the Indian economy can also be gauged from the fact that India tops the chart on expectations of an increasing revenue (92 percent), selling prices (73 percent) and profitability (76 percent).
While there is expectation of a recovery, corporate India continues to cite regulations and red tape as a constraint on growth with 74 percent of the respondents to the survey suggesting bureaucratic hurdle continues to be an impediment in growth. Here too India ranks highest in the IBR survey. This highlights the need for the government to remove regulatory bottlenecks and bring in place a mechanism for faster approvals.
The IBR also shows that 49% Indian businesses plan to ramp up investment in the new buildings and 52% plans to invest in plants & machinery in 2016. While 51% businesses expect an increase in R&D activities in the coming year, only 28% businesses are expecting country's exports to grow. Indian businesses also plan to be on a hiring spree in the coming year as 68% businesses expect an increase in employment - ranking #2 in the survey, lack of skilled labour and finance continues to be top two concerns for Indian businesses.
Source : economictimes.indiatimes.com
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