India Inc optimistic, says survey

Indian companies are at the top of the charts when it comes to business optimism. For the third year in a row, Indian companies are positive about their outlook for 2005 unlike other countries like Japan that aren't so hopeful about the year.

A survey conducted by Grant Thornton on international business owners claims that over 87 per cent of the Indian companies are upbeat about their turnovers as against the global average of 63 per cent.

The survey covered 6,300 companies across the globe and around 500 Indian outfits participated in it.

The reason for the widespread optimism is the 70 per cent growth in the FDI during 2004.

In keeping with the overall upbeat mood, Indian companies also see a higher level of growth in employment in 2005, the study says.

In the last fiscal, the actual Indian employment growth was higher than expected. Though only 37 per cent companies expected employment to increase, 55 per cent actually went on a hiring spree.

Employees also have reason to smile as the study says that 79 per cent of the Indian companies that were surveyed are focused on attracting and retaining their staff. This is against a global average of 44 per cent.

In addition, 43 per cent Indian companies have expressed willingness to provide employees with facilities for leisure activities like gym memberships, clubs etc. This is against the global average of 17 per cent.

On the flipside, 38 per cent Indian companies think that red tape and bureaucracy are the greatest stumbling blocks for growth; 29 per cent of them are apprehensive about the lack of availability of skilled workforce and the remaining 24 per cent are worried about the increasing cost of finance.

The survey also gives an idea of the telecommunications revolution that has taken the country by storm.

Indian business owners, on an average, spend at least two hours a day accessing and responding to e-mails. This is higher than the global average of one and half hours.

Not just that, more than 70 per cent of India's increasingly tech-savvy businessmen also feel that their efficiency is enhanced by being in constant touch with the business and clients through modern communication technologies.

Of the 6,300-odd global medium-sized companies that participated in the survey, more Indian companies than any others admitted that e-mail and internet have led to an increase in their turnovers and profits.