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Business Sentiment In India Weakest Since 2014: Grant Thornton

MUMBAI – Business optimism in India has deteriorated with the country ranking 6th globally on the optimism index in the first quarter of 2018, according to Grant Thornton’s International Business Report (IBR), a quarterly global business survey. In a release on the findings, Grant Thornton said, India has been topping the chart since the new government came into power in 2014, however, the confidence has shaken since the third quarter of 2017 with weakening currency and a surge in oil prices.

In contrast, the report said, globally, business optimism is at an all-time high. The IBR finds that in Q1 2018, global business optimism stands at net 61%, the highest figure recorded in 15 years of research.

Vishesh C Chandiok, CEO, Grant Thornton India LLP said: “The reversal in sentiment amongst mid-sized business in India in the last 3 quarters is startling and I hope policy makers will sit up and take note. With oil climbing, and India firmly in an election year, we ought to brace for a volatile economic environment in the days ahead. Export oriented businesses should see better days, finally.”

The report said underlying pessimism is reflected in other parameters as well including revenue, selling prices, profitability, employment and exports expectations.

The scale and the report are prepared based on the results of a quarterly global business survey of 2,500 businesses in 37 economies.

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