International Business Report Current Affairs
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.
India was ranked 6th on Global Optimism Index released as part of Grant Thornton’s International Business Report (IBR) in the first quarter of 2018. The report was prepared based on the results of a survey of 2,500 businesses in 37 economies.
The top five nations are Austria, Finland, Indonesia, the Netherlands and US. India with a score of 89 was ranked at the sixth place in the index. India had topped the chart for four years, but business optimism in India deteriorated while entering the last year of the current Government led by Prime Minister Narendra Modi.
Underlying pessimism in India’s Business Optimism is reflected in other parameters as well including revenue, selling prices, profitability, employment and exports expectations. Indian businesses have been citing regulations and red tape, availability of skilled workforce, lack of ICT infrastructure and shortage of finance as biggest growth constraints. Even aftersignificant jump in World Bank’s Ease of Doing Business ranking, India still continues to rank first or second in quoting these reasons as the key hurdles for growth.