Corporate India is upbeat about the robust growth prospects in the current quarter, with an index measuring business optimism levels rising sharply for the October-December period. However, concerns remain over a possible rise in interest rates.“The surge in confidence about the growth prospects of the Indian economy is reflected in increased optimism of the business community,” Dun & Bradstreet (India) President & CEO Kaushal Sampat said.
The Business Optimism Index (BOI), which measures the pulse of the business community, increased by 9 per cent on a quarter-on-quarter basis to 163.5 points in the October-December period of 2010.
As compared to fourth quarter of 2009, the BOI witnessed a growth of 14.2 per cent from a level of 143.2.
“Better than expected GDP and IIP numbers, buoyant capital markets, rise in foreign fund inflows coupled with improving demand conditions have supported the upbeat corporate sentiment, as is evident from the substantial increase in the Composite Business Optimism Index (BOI) for Q4 2010, which is now at a two-and-a-half year high,” he said.