Business optimism in India slips on 'slow decision making'

India has slipped to the fourth position among 36 economies in terms of business optimism during the June quarter due to "slow progress on easing regulatory shackles and decision-making", says a report.
The country, which topped the business optimism ranking in the 2014 December quarter, has further slipped from its second position secured in the first three months of this year, according to global consultancy Grant Thornton.
The latest observation comes less than two weeks after global rating agencies Fitch and Moody's expressed concerns about the government's pace of reforms.
Grant Thornton today said business optimism in India has slipped to fourth position in 2015 second quarter even though the country has enacted some encouraging reforms recently.

The conclusions are based on a quarterly global survey titled 'Grant Thornton International Business Report' that covered nearly 2,600 business leaders.
"The drop in optimism can be attributed to the slow progress on easing regulatory shackles and decision-making," the report said.

India's score slipped to 85 in the June quarter from 89 recorded in the previous three months.
Recently, Fitch had said India's business environment is relatively weak compared with peers and would take time to turn around. Moody's had warned of growing concerns about risk of policy stagnation in India and "some disappointment" has emerged over the pace of reforms under Prime Minister Narendra Modi-led government.

Meanwhile, Germany has topped the list of 36 economies in terms of business optimism and is followed by Ireland and New Zealand at second and third positions, respectively.
Other nations in the top ten are Netherlands (5), Nigeria (6), the United Kingdom (7), Philippines (8), Spain (9) and Indonesia (10).
Interestingly, the United States (12th position), China (14) and Singapore (21) are ranked below India.
With regard to India's economy, 83 per cent of Indian businesses expect an increase in revenues as per the survey conducted in May this year.
"The optimism has suffered a decline compared to last two quarters (84 per cent in Q1 2015 and 94 per cent in Q4 2014)," the report said.

As far as the profitability expectations are concerned, India is on the sixth position with 63 per cent Indian businesses expecting a rise in profits.
However, Indian businesses are less optimistic this quarter on the rise of employment in the economy with only 62 per cent of them vouching for the same compared to 75 per cent last quarter, it added.
"The drop is a sign that Indian businesses enthusiasm has fallen after having a lot of optimism based on expectations of rapid liberalisation and reforms by the new government has had a reality check," Harish H V, Partner at India Leadership team, Grant Thornton India LLP, said.