Lesser no of Swedish cos operating in India feel business climate favourable: Survey

Figures slide even as eight out of ten companies plan to increase investment, says Business Climate Survey 2015-16

The business outlook by Swedish companies operating in India has fallen slightly, an annual survey conducted by Swedish Chambers of Commerce and Embassy of Sweden, revealed on Friday.

The Business Climate Survey 2015-16 pointed out 52% of Swedish companies in India consider the current business climate to be very favourable down from 60% in the year before. The survey, which asesses the mood of 141or 89% of all such comompanies, said 2016 would be a key year for reform implementation to sustain postive investor outlook.

Same as last year, eight out of ten companies were looking to increase investments. However, the Goods and Service tax not being implemented have proved to be a dampener, along with lack of necessary skill set among both blue as well as white collar employees.

Corruption is another major area of complain with one out of three companies stating that 'not paying tax was a competitive disadvantage'.

Swedish companies hire 160,000 people directly in the country and are present in the heavy engineering, IT, Telecom and Life science sectors.