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

Banned? Indian ports 'received' 38 US plastic waste containers reexported from Indonesia

By Rajiv Shah
An Indonesia-based international environmental watchdog group has dug out what it has called “a global pollution shell game”, stating how officials in Indonesia approved re-exports of “illegal” US waste shipments containing plastics mainly to India, as also to other Asian countries -- Thailand, South Korea and Vietnam -- instead of returning them to the US “as promised.”

Cops' 'inability' to deliver justice? Model Gujarat ranks 12th among 18 major states

By Rajiv Shah
A Tata Trusts study, released in Delhi on Thursday, has ranked “model” Gujarat 12th out of 18 major states it has analysed across India to “assess” the police's capacity to deliver justice. Several of the advanced states such as Tamil Nadu, Karnataka, Punjab, Haryana, Maharashtra, Andhra Pradesh and Telangana as well as some of the so-called Bimaru states such as Odisha, Jharkhand and Chhattisgarh are found to have ranked better than Gujarat.

People's pressure? GPCB mining cancellation 'notice' to top cement unit in Gujarat

By Sagar Rabari*
Environmental Clearance (EC) was given to Ultratech Cement Co Ltd for limestone mining in villages Talli and Bambhor of Talaja taluka in Bhavnagar district of Gujarat on January 5, 2017. EC was issued ignoring, overriding and undermining opposition from local farmers to mining activity in the area. The mining in these two villages covers an area of 193.3268 hectares (ha), while the entire project is spread over an area of 1,715.1311 ha.

NHRC notice to Gujarat chief secretary following silicosis deaths in Rajkot

By Our Representative
The National Human Rights Commission (NHRC) has asked the Gujarat chief secretary and the district magistrate, Rajkot, to respond to a complaint filed by health rights activist Jagdish Patel of the People's Training and Research Centre (PTRC), Vadodara, regarding the alleged death of Raju Prakash Parihar and two others reportedly because of silicosis, a fatal occupation disease, in Rajkot, one of Gujarat’s top cities.

Bullet train acquisition: Land holding worth Rs 1.5 crore, Gujarat govt 'offer' Rs 8 lakh

By RK Misra*
Foundation stones laid by Prime Minister Narendra Modi litter India’s cities, towns and villages, but there are few projects which he has pursued with such perseverance and tenacity as the Ahmedabad-Mumbai bullet train one. However, the overwhelming state power notwithstanding, the farmers, whose lands are being acquired for the Modi government’s dream project, have no plans to give up the fight.

Gujarat refusal to observe Maulana Azad's birthday as Education Day 'discriminatory'

By Our Representative
The Gujarat government decision not to celebrate the National Education Day on !monday has gone controversial. Civil society organizations have particularly wondered whether the state government is shying away from the occasion, especially against the backdrop of "deteriorating" level of education in Gujarat.

Concern in UK over BJP supporters, Hindu charity 'interfering' in general elections

By Our Representative
Following apprehensions of “foreign interference” in Canadian elections, which took place last month, from several countries, including India, a similar a concern is now reported with regard to the next month’s United Kingdom general elections. The concern has particularly come from Labour Party candidates, who are citing campaign by “India-linked Hindu nationalist group” targeting Labour candidates.