Enthused by the stock market rally, an increasing number of Indian executives believe the economy is on a recovery path, although a majority still feel that the worst is not over, a survey says.
"Buoyed by a sustained stock market rally, executive's attitudes about the state of the Indian economy ticked up in March, though the majority still feel we are in the midst of a severe recession," a survey by global talent management solutions provider Korn/Ferry International said.
About 24 per cent of executives feel the economy is recovering, while 53 per cent believe it is still in a severe recession, the survey, conducted at the end of March, said.
The percentage of executives, who feel the economy is recovering, has almost doubled since the previous survey, which was conducted at the beginning of March, when only 13 per cent of executives had voted in favour of a recovery.
Further, the number of respondents feeling that the economy is in the middle of a severe recession has come down by 8 per cent in the latest survey.
India is technically not in a recession but is facing a slowdown.
"We are all hoping that we have hit near-bottom and will be on the way back up very soon. Executives are seeing initial positive signs of recovery propelled by new stimulus measures, a possible change in political scene and strengthening of corporate governance.
"All of which should continue in the near future enabling the economy to weather the global slowdown," Korn/Ferry Intl India Managing Director Deepak Gupta said.
The findings also revealed that executives in both the United States and India feel that the economy is experiencing a "severe recession". However, the US seems to be less optimistic in its views on the economic recovery as compared to India.
Further, additional findings show that executives favour limited involvement by governments in key corporate actions such as layoffs and compensation limits. However, both India (59 per cent) and the US (60 per cent) seem to feel strongly on executive bonuses being returned to the company who are receiving government bailout funds, the survey stated.
The survey also revealed the sentiment towards government involvement in corporate actions. Just 14 per cent of executives feel that government is the most important player in leading an economy out of recession.
Interestingly, a majority of executives (69 per cent) did agree that collectively consumers, business and government all play vital roles in the economy's recovery.