India slips to 7th position in Business Optimism Ranking
According to the most recent Grant Thornton International Business Report India has slipped to the 7th position in the Business Optimism Index (BOI) in the September quarter, from the second position in the previous three months.
The survey suggests that this ranking is showing the clear signs of lag in the economy.
As per Grant Thornton’s International Business Report (IBR), Indonesia is at the top of the index, followed by Finland (2nd), the Netherlands (3rd), Philippines (4th), Austria (5th) and Nigeria (6th).
Optimism is gone down
According to this quarterly Business Optimism Index, Indian businesses have shown a little confidence over revenue expectations in the next one year.
There is also a drastic fall in confidence for profitability with 54% showing optimism as against 69% in the last quarter.
As per survey other factors like expectations of a boost in selling prices and exports have also suffered a slight fall in optimism in this quarter.
Optimism up or remained intact
According to this survey, Indian businesses remained optimistic about the boost in employment as 54% respondents articulated the need to increase hiring in the next one year, a 3-point rise from June quarter.
Other areas where the optimism remained intact were an investment in plant and machinery and Research & Development (R&D).
But it is expected that the Government’s actions and reforms coupled with the major jump in Ease of Doing Business Rankings will bring back optimism in Indian Business in the next few quarters.
Indian businesses also identified a shortage of finance and lack of skilled workforce as pain points of India Inc taking the 2nd and the 3rd spot respectively.
What is Business Optimism Index?
The Grant Thornton International Business Report (IBR) is prepared based on the results of a quarterly global business survey of 2,500 businesses in 37 economies conducted in September before the announcements of the big reforms by the Government on Bank recapitalisation, infrastructure investments particularly in roads, aggressive actions on insolvency and bankruptcy.