India Inc optimistic about turnover, employment

NEW DELHI: Riding high on the booming economy, corporate India is more optimistic about its revenue prospects and expects a higher growth in employment this year, consulting firm Grant Thornton said in a report.

Around 92 per cent of those responded to a survey in India were optimistic about turnover prospects as against 83 per cent respondents last year, it said.

The findings of this year's Grant Thornton International Business Report (IBR) 2007 reveals that for the fourth consecutive year India topped the chart as the most optimistic country, though businesses in most countries remain positive about economic prospects for the year ahead. The IBR examined plans and trends of 7,200 businesses in 32 countries.

The level of optimism of businesses in India regarding turnover performance was higher than any other country. Over 81 per cent were optimistic regarding profitability for the coming year while 74 per cent remain positive for job growth.

Expected employment growth in India has risen from 69 per cent in 2006 to 74 per cent in 2007. This is 29 per cent more than the global average of 45 per cent.

As per the report, Indian economy can face constraints such as bureaucratic hurdles as 37 per cent of the respondents felt that regulations were the major problems in expansion. The other major constraint was shortage of long-term finance.

India also reported an increase in stress level which is higher than any other country. As per the report, 79 per cent Indian respondents felt stress levels rose compared to 56 per cent globally. On an average, business owners in India work 57 hours a week, the most worldwide.

The study also revealed that globalisation is perceived as an opportunity rather than a threat by around 82 per cent of Indian business owners.