Business confidence in India up from pre-downturn levels now: NCAER survey
20 Nov 2009
Business confidence in India has surpassed the level that prevailed prior to the downturn that hit economic growth prospects, according to the latest National Council of Applied Economic Research-MasterCard Worldwide Index of Business Confidence survey.
The Business Confidence Index (BCI) reported a sharp increase of 21 per cent with a rating of 143.7 points in October 2009, compared with 118.6 points in July 2009. BCI ratings in April 2009 were down to their lowest at 81.6 points after the financial crisis hit economies worldwide.
"Previous data reflects a trend of BCI ratings rising in October, a period of increased sales due to the festive season in India. In the October survey of 2008, this pattern was broken for the first time due to the effects of the global financial crisis on Indian markets," the survey said.
The index is released on a quarterly basis and is based on survey indicators relating to overall economic conditions, financial position of companies over the next six months, investment climate and level of capacity utilisation.
All four indicators are weighted equally. The survey, which was conducted in September 2009 received 545 responses.