Skip to main content

India's business confidence "down" by 4.1% in Q4 2015, profits by 8.3%, new orders by 7.3% on y-to-y basis

By Our Representative
A top business rating company has said that India's business confidence, for the fourth quarter (Q4) of 2015 has continued to fall, with “optimism value for net profits” declining by by 8.3% and “new orders” by 7.2% on “year to year” basis. It added, the composite business optimism index, at 122.0 during Q4 2015, decreased of 4.1% as compared to Q3 2015.
Dun & Bradstreet (D&B), which is considered the world’s leading source of global business information, said, this result is “based on the responses received” by it, adding, the assessment is also based on the “the political stalemate witnessed in Parliament on two critical pieces of legislation – the Land Acquisition Act and the Goods and Services Tax Bill.
D&B has suggested that failure to break the Parliament stalemate by the Modi government is reflected in its inability “to go ahead with its reform commitments”, denting “business confidence”.
D&B adds, “That apart, monsoon deficiency, weak new investment demand and rising global financial market volatility also operated as binding constraints on business sentiment.”
Dr Arun Singh, senior economist with the D&B, clarifies, “The index does not capture the impact of rate cuts by the Reserve Bank of India as the announcement was made post the survey period.”
He adds, “For business confidence to get a sharp boost, it is pertinent for the Government to shift up several gears from the slow drip-feed of reforms to targeted measures that are aimed at encouraging investment and correcting structural deficiencies in the economy.” Dr Singh says, “Going forward, the effectiveness of supply management measures to contain the impact of deficient monsoon would also play a crucial role in shaping business sentiment.”
The D&B business optimism index is widely claimed to recognise as a reliable indicator “which measures the pulse of the business community and serves as a reliable benchmark for investors. The index is arrived at on the basis of a quarterly survey of business expectations”, a communique issued by the D&B says.
The survey was conducted on a sample of companies that were selected randomly from D&B’s commercial credit file.
“The sample selected is a microcosmic representation of the country’s business community and includes companies from several sectors including basic goods, capital goods, intermediate goods, consumer durables, consumer non-durables and service sectors”, the communique adds.
Respondents to the survey were asked six standard questions regarding whether specified parameters viz., net sales, net profits, selling prices, new orders, inventories and employee levels, will register an increase, decline or show no change in the ensuing quarter as compared to the corresponding quarter of the previous year. The indices were then calculated by subtracting the percentage of respondents expecting decreases from those expecting increases.
Customers are known use D&B risk management solutions to mitigate risk, increase cash flow and drive increased profitability. The company's sales and marketing solutions analyses markets, locate prospects and increase revenue from new and existing customers.
“In 2014, D&B featured on the World’s Most Ethical Companies list in the Business Services category by Ethisphere, for the sixth consecutive year”, the communique said.

Comments

TRENDING

Mystery around Gujarat PSU 'transfer' of Rs 250 crore to Canadian firm Karnalyte

By AK Luke, IAS (Retd)*
While returning from a Board meeting of the Oil India Limited (OIL) in Ahmedabad some time in 2012, two officers of the Gujarat State Fertilizers and Chemicals Ltd (GSFC), Nanavaty and Patel,  saw me off at the airport. They said they were proceeding to Canada in connection with a project GSFC had entered into with a company there. As we were running late, I hastily wished them the best.

Savarkar in Ahmedabad 'declared' two-nation theory in 1937, Jinnah followed 3 years later

By Our Representative
One of the top freedom fighters whom BJP and Prime Minister Narendra Modi revere the most, Vinayak Damodar Savarkar, was also a great supporter of the two nation theory for India, one for Hindus another for Muslims, claims a new expose on the man who is also known to be the original proponent of the concept of Hindutva.

J&K continues to be haunted, as parts of India 'degenerate' into quasi-Kashmir situation

By Rajendran Narayanan*, Sandeep Pandey**
“Jab har saans mein bandook dikhe toh baccha kaise bekhauf rahe?” (How can a child be fearless when she sees a gun in every breath?) remarked Anwar, a gardener from Srinagar, when asked about the situation in Kashmir. On November 30, 2019, a walk through an iron gate in a quiet neighbourhood of Srinagar took us inside a public school. It was 11 am when typically every school is abuzz with activity. Not here though.

Indians have made 119 nations their ‘karma bhumi’: US-based Hindu NGO tells Rupani

Counterview Desk
In a stinging letter to Gujarat chief minister Vijay Rupani, the US-based Hindus for Human Rights (HfHR), referring to the report citing his justification for the Citizenship Amendment Act (CAA) – that “while Muslims can choose any one of the 150 Islamic countries in the world (for residence), India is the only country for Hindus" – has said, he should remember, Hindus have made several countries, including USA, their home.

Dalits rights meet planned on how citizenship law 'negates' Ambedkar's equality focus

By Our Representative
A Dalit rights meet has been planned at the Dalit Shakti Kendra (DSK), Sanand, Ahmedabad district, to discuss implications of the Citizenship Amendment Act (CAA), passed by Parliament on December 10-11, for Dalits, Adivasis and other marginalized sections. Announcing the decision, DSK director Martin Macwan said, the meet would take place on December 25, 2019, at 11.00 am, to commemorate the anniversary of burning of copies of Manusmriti by Dr BR Ambedkar.

What about religious persecution of Dalits, Adivasis, asks anti-CAA meet off Ahmedabad

By Rajiv Shah
A well-attended Dalit rights meet under the banner “14 Pe Charcha” (discussion on Article 14 of the Indian Constitution), alluding to Prime Minister Narendra Modi well-known campaign phrase of the 2014 Parliamentary elections, “chai pe charcha” (discussion over cup of tea), organized off Ahmedabad, has resolved on Wednesday to hold a 14 kilometres-long rally on April 14 to oppose the controversial Citizenship Amendment Act (CAA), enacted on December 10-11.

'Allow critical thinking': SAARC-sponsored varsity teachers support protesting students

By Our Representative
Teachers of the high-profile South Asian University (SAU), a New Delhi-based international institute sponsored by eight member states of the South Asian Association for Regional Cooperation (SAARC) – Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka – have supported “peacefully protesting students and other citizens” against the Citizenship (Amendment) Act (CAA), 2019 and the National Register of Citizens (NRC).

Upendra Baxi on foolish excellence, Indian judges and Consitutional cockroaches

By Rajiv Shah
In a controversial assertion, top legal expert Upendra Baxi has sought to question India's Constitution makers for neglecting human rights and social justice. Addressing an elite audience in Ahmedabad, Prof Baxi said, the constitutional idea of India enunciated by the Constituent Assembly tried to resolve four key conflicting concepts: governance, development, rights and justice.

Kerala governor turned History Congress into political arena, 'insulted' Prof Irfan Habib

Counterview Desk
In a signed statement, office bearers of the Aligarh Society of History and Archaeology (ASHA), Prof Syed Ali Nadeem Rezavi (president), Prof Jabir Raza (vice-president), Prof Manvendra Kumar Pundhir (secretary) and Prof Farhat Hasan (joint secretary), have said that Kerala governor Arif Mohammad Khan had sought to insult veteran historian Prof Irfan Habib, 88, at the 80th session of the Indian History Congress, even as turning it into his “political arena”.