About 73% of Indian businesses are planning to increase hiring in the coming year doubling the global average of 36%, said the Grant Thornton International Business Report (IBR). About 83% of Indian businesses are optimistic about their local economy (up from 78% three months earlier), and much higher than the global average of 50%, trailing only Peru (98%), the Philippines (92%), the UAE (92%) and Mexico (84%).
The Grant Thornton International Business Report said that 88% of Indian businesses plan to increase employee wages at or above inflation (up from 83%). Inflation is still a concern for Indian businesses as 76% planned to increase the prices of their products (up from 69%), ranking third in the world, trailing only Botswana (86%) and Argentina (77%).
Vishesh Chandiok, national managing partner at tax and advisory firm Grant Thornton in India, said, “Though the survey shows an increase in optimism and demand, as well as willingness to invest, there’s still an issue of uncertainty. For most businesses while Reason says hoard cash, their instinct says invest now to get ahead of the competition. If businesses think another crash is imminent, they will hoard cash to insulate their operations.
Grant Thornton International Business Report (IBR) is a quarterly survey of more than 3,000 businesses in 44 countries.