India Inc high on optimism for 2003

Indian businessmen are more upbeat about their prospects for the coming year than most of their global counterparts, says a survey carried out by consultancy and accountancy firm Grant Thornton.

To be released in April 2003, the Grant Thornton International Business Owners' Survey says 52 per cent of Indian businessmen are optimistic in their outlook for 2003, as against 37 per cent globally and 32 per cent in the European Union. In the US, 51 per cent of the respondents expressed optimism for 2003.

“It is good that optimism in India is as high as it is in the US. Quite a number of sectors in India are dependent on the US economy,” Grant Thornton India partner Vishesh Chandiok said.

The survey was carried out among 500 top businessmen in India and 6,000 corporate chiefs in 19 countries.

It says 27 per cent Indians are pessimistic in their outlook for 2003 (compared to 34 per cent globally and 44 per cent in the EU), while 19 per cent are neither pessimistic nor optimistic (29 per cent globally and 24 per cent in the EU).

The list is topped by Australia, where 65 per cent of the respondents are optimistic about 2003, followed by Canada (62 per cent), South Africa (57 per cent), Mexico (53 per cent), India (52 per cent) and the US (51 per cent).

India also ranks the highest in economic optimism among the Asian countries in the survey.

While 32 per cent of the businessmen surveyed in Singapore were optimistic about 2003, the number was 14 per cent for Hong Kong and 6 per cent for Japan.

The survey also says that in India, 78 per cent business owners expect to see a rise in turnover in 2003, while 37 per cent expect their selling price to increase, 30 per cent expect exports to rise, 46 per cent see a rise in employment, 61 per cent hope to see a rise in profitability and 40 per cent see higher investments in plant and equipment.

Globally, 58 per cent business owners are looking at a rise in turnover during the coming financial year, while 29 per cent expect their selling price to go up, 17 per cent feel that exports will go up, 34 per cent hope employment will climb, 48 per cent expect profitability to rise and 37 per cent see higher investments in plant and machinery during 2003.