Indian companies least confident worldwideStaff Writer | March 15, 2017
Although companies operating in the Indian private sector economy expect new business growth to support increases in output and employment in the year ahead, levels of confidence are down in February from those recorded four months ago.
India Markit India Business Outlook
This is the lowest reading of the 12 countries for which composite outlook data are available.
Optimism has fallen in the manufacturing and service sectors, with the respective net balances down from +28% and +24% to +16% in both cases.
Whereas Indian enterprises foresee new projects in the pipeline, strong client demand and the possible introduction of the goods & services tax as potential growth drivers for the year ahead; competitive pressures, government policies, client defaults, and uncertainty in global markets are seen as threats to the outlook.
New business is anticipated to rise over the course of the next 12 months, though confidence is at its lowest mark since the global financial crisis.
Sentiment for business revenues (+13%) is down from that registered in the prior outlook survey (+20%), as is also the case for profitability (from +25% to a surveyrecord low of +13%). ■