After staying on top for two quarters, India slipped to the third position globally on the scale of business optimism because of delays in key reforms like the GST and bad loans facing state-owned banks, says a report.
According to the latest Grant Thornton International Business Report (IBR), India ranked third during the April- June quarter of 2016. “Delays in key reforms like GST, non-resolution of tax disputes, banking issues due to NPAs and need for significant recapitalisation of public sector banks are some of biggest concerns of Corporate India that have collectively impacted the business confidence affecting the overall business optimism in the country,” the report said.
Moreover, growth in employment expectations dropped to second position during this period from top rank in the previous quarter (January-March this year), while the optimism further slipped to fourth place in profitability expectations from third.