With business sentiment at the
"weakest" in four years, India slipped to the 6th
position globally in the business optimism index for
the first quarter of this year, says a survey.
Business optimism is however at an
"all-time high" globally with the index at net 61 per cent, the
highest figure recorded in 15 years of research, as per Grant Thornton's quarterly
global business survey released 8 May
Noting that business sentiment in India has been the
weakest since 2014 in the first quarter, the advisory firm said the confidence
has been shaken since the third quarter of 2017 with weakening currency and a
surge in oil prices.
"While entering the last year of the current
regime, the business optimism in India has deteriorated with the country
ranking 6th globally on the optimism index in the first quarter of 2018...
India has been topping the chart since the new government came into power in 2014,"
Grant Thornton's International Business Report said.
With a score of 89, India is at the sixth place
in the index. The top five nations are Austria, Finland, Indonesia, the Netherlands
and the US.
The conclusions are based on a quarterly global
business survey of 2,500 businesses in 37 economies.
With regard to India, Grant Thornton said the
underlying pessimism is reflected in other parameters as well including
revenue, selling prices, profitability, employment and exports
Indian businesses have been citing regulations
and red tape, availability of skilled workforce, lack of ICT infrastructure and
shortage of finance as the biggest growth constraints.
Even after India's significant jump in World
Bank's Ease of Doing Business ranking, the
country still continues to rank 1st or 2nd in quoting these reasons as the key
hurdles for growth, it noted.
Prime Minister Narendra Modi-led NDA government
came to power in May 2014.
Grant Thornton India LLP CEO Vishesh C Chandiok
said the reversal in sentiment amongst mid- sized business in India in the last
three quarters is startling and hoped that policy makers would sit up and take
"With oil climbing, and India firmly in an
election year, we ought to brace for a volatile economic environment in the
days ahead. Export oriented businesses should see better days, finally,"