Indian business houses plan to hire more compared to any other country, says International Business Report by Grant Thornton, a global consultancy firm. The report also ranked India fifth in the world in business optimism and planned wage growth. Globally, 27% of businesses are optimistic about the economic outlook, up from 4% in the previous quarter, according to the report, which is based on a quarterly survey of more than 3,000 businesses in 44 countries.
Another global research firm Morgan Stanley in its report said the worst phase of the economy might be over. “Trailing macro stability indicators are a cause of concern for investors, but we believe that the worst may be behind,” the research report said. The government has initiated steps to correct the bad mix of high fiscal deficit and low investment spending, which should improve the productivity, it added.
Morgan Stanley report said moderation in inflation is one of the main reasons behind better growth prospects in the coming days. Slower growth in government spending, deceleration in rural wages, slower rise in global commodity prices, moderation in asset prices, particularly housing, and also slower growth in domestic demand should lead to moderation in inflation in the country.