With strong sentiment for change in the recent state elections and decisive actions by the RBI/government in last few months, it’s easy to see how medium to large businesses in India are more optimistic about the outlook for the economy in the coming months, Chandiok added. “Whilst there is risk in expecting too much too soon from the current regime or any new regime, I certainly expect a dramatic turn in sentiment towards positivity from Q2 FY14-15,” he said.
Moreover, the appointment of Raghuram Rajan as the governor of Reserve Bank of India seems to have steadied the economy and provided the much-needed confidence to Indian businesses, the report said.
According to the report, 90 of Indian businesses believe their revenues would rise in 2014 while 76 are most optimistic for increasing profitability this year. Around 35 of businesses are also hoping to witness a jump in exports.
Research and Development (R&D) initiatives are also likely to get a boost this year with 46 businesses betting big on R&D. About 65 businesses foresee a rise in employment in 2014. “Despite optimism on several fronts, Indian businesses still feel the pinch with respect to low availability of finance,” the report said, adding that 52 of companies believe shortage of finance is likely to hurt their business and derail their growth plans in 2014. Other constraining factors include rising energy costs, regulations/red tape and lack of skilled workers. (PTI)