Reflecting subdued sentiments, India has been ranked fourth globally in terms of business optimism, as only 64 per cent of corporates are optimistic about the country's economic growth over the next 12 months, says a survey.
Earlier, India stood at sixth position with 78 per cent of the total respondents showing confidence in the economic growth for the April-June 2018 period.
According to Grant Thornton's International Business Report (IBR) released on Tuesday, Philippines topped the chart with 73 per cent respondents being optimistic about economic growth, followed by Vietnam (72 per cent) and Indonesia (66 per cent).
The IBR further noted that global optimism has fallen to a three-year-low level and economic uncertainty remains elevated.
"In tandem with the subdued economic optimism, India Inc's dismal sentiments reflect in its expectations for an increase in revenue, selling prices and profitability," Grant Thornton said in a release.
According to the IBR, India had slipped to fifth position from fourth in the second half of 2018 on revenue expectations. Moreover, on the selling prices and profitability expectation parameters, the country has slipped to eighth and fifth positions, from sixth and third, respectively.
Notwithstanding the economic uncertainties, India had the highest export expectations with 65 per cent of the respondents expecting an increase in exports in the next 12 months.
While employment has been a burning issue since Prime Minister Narendra Modi-led government came into power, the survey shows that Indian businesses are optimistic about a rise in employment in the second tenure of the government.
While there are high expectations of increase in employment in the country, Indian businesses continue to highlight the lack of skilled workforce as a concern for growth, the release said.
Further, the survey noted that businesses cited regulations and red tape, and shortage of finance as key hurdles for business growth as India ranks first and second, respectively, in quoting these concerns.
The IBR report gathers responses biannually from 5,000 business leaders in 35 economies, including the G20 members, and has a sample size of over 250 respondents in India.