In what could be considered as an excellent news to keep the new weeks' spirit high, a recent survey done by Grant Thornton, one of the world's largest professional services network of independent accounting and consulting member firms, has revealed that Indian business is continuing its impressive trajectory, courtesy continued reforms by the government and a buoyant economy.
The latest Grant Thornton International Business Report (IBR) churned out by the Chicago-headquartered company saw India's rank improve from 4th to 2nd position on the optimism index in the second quarter of this year (2017). The survey report was prepared on the basis of results of a quarterly global business survey of 2,600 businesses in 37 economies.
The report found out that a whopping 94 per cent Indian businesses are impressed with the current economic growth that India is exhibiting and are confident that the country will continue or even better its performance in the years to come. While India continued its climb on IBR's optimism index, China is having a hard time building confidence in its business community. According to the survey, only 48 per cent of Chinese businesses are confident in the country's economic growth for the second consecutive quarter.
The survey also found out that, in India, only 52 per cent of the respondents are expecting the selling prices to increase as against 55 per cent in the last quarter. This has resulted in India registering a two place jump in the ranking for this parameter from 6th position in last quarter to 4th position in the second quarter. The report further said that this might be nullified now considering GST has come into implementation in the country from July 1.
The IBR further stated that, with 78 per cent of businesses in India expecting an increase, the Indian subcontinent emerged right on the top of the chart on the ranking for revenue expectations.
Coming to profitability expectation, 69 percent of the survey respondents expect a higher profitability. This helped India in improving its ranking in the given parameter to 2nd position on the chart from 6th position in the last quarter.
Commenting on India's phenomenal performance in the survey, Harish HV, Partner – India leadership team, Grant Thornton India LLP said, "After a slight dip in Q1, India is climbing the optimism charts faster, ranking 2nd on the index this quarter. Indian businesses expect an increase in selling prices and higher revenue, both reflected in the booming stock markets. The Government continues to bring in transformational reforms such as GST which has given a further push to optimism. The only worrying factor is the weak outlook on employment which we hope will give impetus to labour reforms. The other area which also needs to be addressed is exports."
While India ended up improving its ranking in a lot of parameters, the survey did give Indians certain points to ponder and improve upon.
According to the survey, only 34 per cent of the respondents expect an increase in exports. This weak 34 number reflects the weakening sentiment on IT exports which may have resulted in this dip.
The survey also noted that India digressed to 4th position from 3rd in the last quarter in the ranking for employment expectations. India has witnessed a consistent fall in the employment expectations ranking in the last three quarters with 51 percent expecting a rise in employment in Q2 2017 compared to 56 percent and 62 percent in Q1 2017 and Q4 2016 respectively. This can be considered as a worrying trend for the Indian Economy.
The latest Grant Thornton International Business Report (IBR) churned out by the Chicago-headquartered company saw India's rank improve from 4th to 2nd position on the optimism index in the second quarter of this year (2017). The survey report was prepared on the basis of results of a quarterly global business survey of 2,600 businesses in 37 economies.
The report found out that a whopping 94 per cent Indian businesses are impressed with the current economic growth that India is exhibiting and are confident that the country will continue or even better its performance in the years to come. While India continued its climb on IBR's optimism index, China is having a hard time building confidence in its business community. According to the survey, only 48 per cent of Chinese businesses are confident in the country's economic growth for the second consecutive quarter.
The survey also found out that, in India, only 52 per cent of the respondents are expecting the selling prices to increase as against 55 per cent in the last quarter. This has resulted in India registering a two place jump in the ranking for this parameter from 6th position in last quarter to 4th position in the second quarter. The report further said that this might be nullified now considering GST has come into implementation in the country from July 1.
The IBR further stated that, with 78 per cent of businesses in India expecting an increase, the Indian subcontinent emerged right on the top of the chart on the ranking for revenue expectations.
Coming to profitability expectation, 69 percent of the survey respondents expect a higher profitability. This helped India in improving its ranking in the given parameter to 2nd position on the chart from 6th position in the last quarter.
Commenting on India's phenomenal performance in the survey, Harish HV, Partner – India leadership team, Grant Thornton India LLP said, "After a slight dip in Q1, India is climbing the optimism charts faster, ranking 2nd on the index this quarter. Indian businesses expect an increase in selling prices and higher revenue, both reflected in the booming stock markets. The Government continues to bring in transformational reforms such as GST which has given a further push to optimism. The only worrying factor is the weak outlook on employment which we hope will give impetus to labour reforms. The other area which also needs to be addressed is exports."
While India ended up improving its ranking in a lot of parameters, the survey did give Indians certain points to ponder and improve upon.
According to the survey, only 34 per cent of the respondents expect an increase in exports. This weak 34 number reflects the weakening sentiment on IT exports which may have resulted in this dip.
The survey also noted that India digressed to 4th position from 3rd in the last quarter in the ranking for employment expectations. India has witnessed a consistent fall in the employment expectations ranking in the last three quarters with 51 percent expecting a rise in employment in Q2 2017 compared to 56 percent and 62 percent in Q1 2017 and Q4 2016 respectively. This can be considered as a worrying trend for the Indian Economy.
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