Indian businesses
Glenn Saldanha (R), chairman and chief executive of Glenmark Pharmaceuticals Limited, listens to a question during the annual general meeting in Mumbai, India, September 22, 2015.Reuters

Indian companies are the second most optimistic businesses globally next only to Irish firms, according to Grant Thornton International Business Report (IBR) .

The report, which is a quarterly global survey of 2,580 business leaders, has ranked India at second position in terms of business optimism, based on 86% of Indian respondents who remain bullish over their revenue growth.

"India is relatively insulated from the slowdown in China and sees a slight gain in confidence, despite falling exports," PTI quoted the survey as saying.

The survey noted the larger-than-expected rate cut of 50bps announced by the Reserve Bank of India (RBI) recently to boost the country's economic growth.

The percentage of Indian businesses, which are optimistic about their income growth, has risen by 3% from 83% in the last quarter, the survey showed.

Besides, 69% of Indian firms now expect an increase in their profits.

"Indian businesses have been consistently optimistic in their business outlook over the past decade barring a couple of quarters. This is based on the underlying strength of the economy, the consistent high growth rate, the entrepreneurial dynamism in being able to create new opportunities and businesses and the lower reliance on global trade based on significant domestic demand," said Harish HV, Grant Thornton India LLP Partner India Leadership team. 

But the optimism on employment growth in the country saw further decline in the survey, with only 52% of the Indian Inc expecting a rise in job growth.

"The concern based on the results of this survey is the pessimism on employment, which is a key factor and need for the country given the demographic dividend which could turn into a demographic nightmare without adequate employment generation," it said.

"The Government's thrust on 'Make in India' needs much more push to make it a reality and that could salvage the situation," the report added.

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