Finance professionals optimistic about Indian economy

Finance professionals in India are optimistic about the economy amid signs that foreign direct investment (FDI) is rising again, says a survey.

From October-March 2014, about 67% of the finance professionals surveyed in the country expressed confidence over the national economy.

The figure stood at 46% for the previous 6-month period, said the survey by the Association of Chartered Certified Accountants (ACCA) and Institute of Management Accountants.

"Overall, it appears as though the FDI crunch that endangered the recovery in 2013 is coming to an end," ACCA's Senior Economic Analyst Emmanouil Schizas said. Opportunities

"Business increased significantly in the last six months, suggesting recovery from a two-year slump," Schizas noted.

He added that "business capacity building has started to stabilise after a year-long downturn, and cash flow and demand conditions have also started to recover following a significant tightening in late 2013".

However, the survey noted that though the optimism is at highest level in more than two years, there are concerns that access to growth capital is tightening.

"Despite improving fundamentals in many respects, there are also signs that India's economy is facing new headwinds," Schizas said.

"Respondents report that access to growth capital is still tightening, and deteriorated substantially over the last months..." he added.

ACCA is the global body for professional accountants. The Institute supports more than 1.62 lakh members and 4.28 lakh students in 173 countries.