Indian business leaders have emerged as the most optimistic lot globally about economic recovery in 2016, largely owing to a pro-reforms government, recent policy announcements and regulatory changes, a Grant Thornton report says.
According to the Grant Thornton International Business Report ( IBR), a quarterly global survey of 2,580 business leaders across 36 economies, 89 per cent of the respondents in India expressed confidence in the stable government and expect economic recovery.
The survey was conducted in the October-December quarter of 2015 and participants were asked how optimistic they are for the economy in the next 12 months.
India was ranked on top, with 89 per cent respondents confident of economic recovery in 2016, followed by Ireland (88 per cent) and Philippines (84 per cent).
"We have a refreshed political will, stretched but resolute businesses, a buzzing start-up space, easing foreign capital policy and some significant legislative reforms in the pipeline -- these are all positive indicators which could not have been imagined two years ago," Grant Thornton India National Managing Partner Vishesh C Chandiok said.
While there is expectation of a recovery, corporate India cited regulations and red tape as constraints on growth. A total of 74 per cent of the respondents said bureaucratic hurdles are impediments in growth.
"The geopolitical tensions and the structural stress building up in the developed and emerging economies would continue to present both opportunities and inherent threats," Chandiok added.
Globally, business optimism heading into 2016 stood at net 36 per cent.
"The global economy continues to change and evolve, with shifting landscapes in major economies creating new challenges but also new opportunities.
"Those businesses with an instinct for growth will be best placed to spot these emerging pockets of opportunity, build new trade links, and make the most of the brighter outlook being reported for 2016," Grant Thornton Global CEO Ed Nusbaum said.