Business Optimism Up, But India Slips in Global Rankings

Business optimism is clearly a relative term. A recent study has shown that optimism among Indian businesses has grown in the last quarter of 2013, compared to the previous quarter. However, despite this, India has slipped to eighth place in the global optimism table, after having topped the optimism charts for five consecutive years.

The latest findings from Grant Thornton’s International Business Report (IBR) (which provides insights into the views and expectations of more than 12,500 businesses) show that 69 percent of Indian businesses expressed optimism over the country’s economy in 2014, up from 57 percent in the preceding quarter. However, globally, India ranks eighth, behind countries like Philippines, Peru, Indonesia, Denmark and even the UK.

According to Grant Thornton, one of the reasons for the rise in optimism seems to be the appointment of Raghuram Rajan as RBI governor. The move appears to have steadied the economy somewhat and provided what the business community sees as much-needed confidence.