11/11/2017 99 Economic Affairs | Growth and development | View Recent Current Affairs
- As per Grant Thornton's International Business Report (IBR), India has slipped in 'business optimism' index to the 7th position in the September quarter, from the 2nd slot in the previous three months.
Highlights of the index:
- Indonesia is at the top, followed by Finland (2nd), the Netherlands (3rd), Philippines (4th), Austria (5th) and Nigeria (6th).
- Indian businesses have expressed low confidence over revenue expectations in the next 12 months.
- They also saw a drastic fall in confidence for profitability with 54 per cent showing optimism as against 69 per cent in the last quarter.
- Other parameters like expectations of increase in selling prices and exports have also suffered a slight fall in optimism in this quarter.
- There were clear signs of lag in the economy which caused the drop in ratings.
- According to IBR, India tops the chart in citing regulations and red tape and lack of ICT infrastructure as the biggest growth constraints with 69 per cent and 46 per cent voting for it respectively.
- Indian businesses also identified shortage of finance and lack of skilled workforce as pain points of India Inc taking the 2nd and the 3rd spot respectively.
- Globally, the overall position for business optimism remains relatively high at 49 per cent in the September quarter. This is down 2 pps on the June quarter, and follows five consecutive quarterly increases in business sentiment.