Riding on firmer demand and improved economic prospects, India's manufacturing firms are optimistic about their businesses in the coming year, a KPMG survey says.
According to the summer 2009 KPMG Business Outlook survey, a considerably higher number of firms expect growth in new business received and revenues in the year ahead as compared to January survey findings.
"Indian manufacturers are optimistic about the outlook for their business in the coming year, largely as a result of firmer demand and improved economic prospects," the report said.
A net balance of 22.5 Indian manufacturers expect growth of activity in the latest survey from negative 1.6 in January.
The report, which surveyed around 1,800 manufacturing sector firms across the BRIC region (Brazil, Russia, India and China), highlighted a strong and broad-based rebound in sentiment was visible following the drop seen in the aftermath of the financial crisis.
However, Indian manufacturing firms confidence remains substantially below 2008 levels and is the lowest among countries of the BRIC region, it said.
Overall, the headline net balance for business activity in the region climbed sharply from 3.6 in January to 46.5 in the summer survey. The index suggests output levels would rise at a marked pace over the next twelve months.
