Reflecting strong recovery, India Inc is upbeat on economic activities for the first quarter of this year, driven by improving domestic demand, says leading global financial consultancy firm Dun & Bradstreet (D&B).
Composite Business Optimism Index, formulated by D&B, rose 43.4 per cent during January-March 2010, year-on-year compared to 3 per cent in the previous quarter, indicating that economic recovery is on a strong wicket.
D&B's statement came on a day when industrial production recorded 11.7 per cent growth in November, the fastest in 25 months.
"An increase in the Composite Business Optimism Index by as much as 43.4 per cent (y-o-y) corroborates the fact that the Indian economy is firmly on revival path...Improving domestic demand, surge in domestic stock markets...Increased capital inflows and stabilising export demand are likely to have supported the optimism in the business sentiment," D&B said.
While this could be partly attributed to the low base effect, it also points towards improving corporate optimism, the report said.
