India was ranked 6th in the global optimism index with business optimism tepid in second quarter (Q2) of 2018. The index was released as part of Grant Thornton’s International Business Report (IBR), a quarterly global business survey. The report was based on results of quarterly global business survey of 2,500 businesses in 32 economies.
Key Highlights of report
The global optimism index for Q2 of 2018 was topped by Indonesia followed by Netherlands, Austria, Philippines and China. Globally business optimism has dropped from record high net 61% in Q1 2018 to net 54% in Q2 in 2018 and businesses are optimistic about increase in revenue.
India was recently declared as 6th largest economy by World Bank, surpassing France. However, higher twin deficits resulting in falling rupee and rising crude oil prices and inflation continue to be reasons for sluggish business optimism in India. Confidence of Indian businesses has been low since Q3 2017.
In India also businesses are optimistic about an increase in revenue but availability of skilled workforce remains a key constraint for growth and employment expectations are low. Red tape and information, communications technology (ICT) infrastructure are main concern for growth in India.