The latest Grant Thornton International Business Report for the April-June quarter has placed India third on the global scale of business optimism. For the last two quarters, India topped the rankings. The report attributed the drop to delays in key reforms like the Goods and Service Tax Bill and bad loans plaguing state-owned banks, reported PTI.
Growth in employment expectations and profitability expectations also fared poorly. While growth in employment expectations came down to second position during this period – it was ranked No 1 in the previous quarter – profitability expectations also dropped one place from its third position.
However, India continues to top the chart on expectations of increasing revenue with 96% respondents voting in favour of it. The survey indicates increased expectations for an upsurge in selling prices in India, reported The Hindu Business Line. According to the survey, 35% respondents expect a rise in exports compared to 13% in the last quarter.
According to Grant Thornton partner Harish HV, the issue bothering investors is slow progress on key reforms, simplification of government processes and regulatory uncertainties. “The passing of GST Bill, which we hope will happen in the upcoming Parliament session, should reverse this trend,” he said.
Grant Thornton is a global consultancy company that prepares the report based on the results of a survey of 2,500 businesses across 36 economies.