Embed Size (px)
DESCRIPTION
This survey-based quarterly report provides a quick snapshot of India's economic and business environment, with quarter-on-quarter comparisons of growth, profitability, revenue, and export trends. The report also outlines the top 5 challenges for the growth and expansion of Indian businesses.
Citation preview
India Ahead A quarterly snapshot of India's economic and business outlook July-September | Q2 2011-12
Mounting government debts and squeezing credit supply in the West have started affecting global demand. Though business owners in India are positive about revenue and profitability, our survey indicates towards south-bound trends on quarter-on-quarter basis.
About half of our survey respondents posited that increasing regulations, high cost of finance and less availability of long-term finance constrain their ability to expand and grow their businesses. Moreover, this survey-based report would further provide you an outlook on India's economic and business environment, and the scenario emerging up in the near term.
Outlook on country's economy over the next 12 months
“Global interdependence has different dimensions, and the impact of the pressure building up in the US, Japan and Europe is explicitly visible in India. The results of our quarterly survey indicate that business sentiments in the second quarter of this financial year were not so positive compared to the first quarter.
However, we see the long-term growth fundamentals for the country intact.”
Vishesh Chandiok National Managing Partner Grant Thornton India
Q1 | April-June 2011 Q2 | July-Sep 2011
88%Positive
59%Positive
Top 5 challenges for the growth and expansion of Indian businesses
40%
42%
44%
45%
50%
ICT inf rastructure
Shortage of working capital
Shortage of long term f inance
Cost of f inance
Regulations/Red tape
Revenue Profitability
Q1 Q2
90% positive
72% positive
Q1 Q2
76% positive
62% positive
Outlook on business environment | Q2-2011 vs Q1-2011
Trends over the next 12 months
Exports Employment
Q1 Q2
21% positive
25% positive
Q1 Q2
80% positive
65% positive
"Indian entrepreneurs are treading cautiously in a market which is giving confused signals; equity markets, forex rates and commodity prices, particularly the so-called 'safe' precious metals, are all volatile. International expansion opportunities seem attractive but the global economy is in turmoil.
On the other hand, domestic demand is still good but access to affordable capital for growth is restricted. Clearly, this confusion has a bearing on the level of business owners' confidence."
Vikesh Mehta, Partner, Grant Thornton India
“With the global economic environment under threat, Indian companies are once again looking out. One possible reason for this could be the current valuation of troubled assets in USA and Europe offering good opportunities for Indian businesses to have a global footprint and grow inorganically. This opportunity coupled with the possibility of opening up of the debt market in India especially in terms of leveraged buy-outs or acquisition financing will help increase the confidence of Indian Companies.”
Prashant Mehra, Partner, Grant Thornton India
About India Ahead report: This quarterly report by Grant Thornton India draws on survey results from Grant Thornton International Business Report (IBR), which is an international survey of the opinions of medium to large privately held businesses (PHBs) and of a small proportion of small to medium listed companies. For more details, please write to us at [email protected]
