Many private surveys have already shown that there is a pall of gloom over the Indian business landscape. The Reserve Bank of India (RBI) reports in its quarterly economic review released on Monday that business confidence in India continues to be battered.
RBI’s Industrial Outlook Survey tracks confidence levels in manufacturing companies in the private sector. It shows a 0.9% decline in business expectations for July to September, compared with the previous quarter.
But there is a glimmer of hope as well. Businesses are more confident than they were a year ago. Even the decline over the previous quarter is more modest than what private sector surveys have suggested. Research firm Dun and Bradstreet, for example, said earlier that its business optimism index for Q2 went down by 11% over Q1 and a huge 18% over the year. RBI brings better news.
Yet, there is little doubt that animal spirits in the economy are getting muted.