Indians have again emerged as second most confident about their economy globally on account of rising hope that Indian economy will grow faster than expected with the Reserve Bank of India (RBI) cutting repo rate and lower inflationary pressure, said a report by global research firm Ipsos.
According to the Ipsos Economic Pulse of the World Survey, India’s economic confidence further jumped up by five points to 79 per cent in the month of March compared to the previous month, to retain the second most economically confident nation title after Saudi Arabia, which tops the table with 89 per cent.
Mick Gordon, CEO of Ipsos in India said, “India has overtaken Japan to become the third largest economy in terms of purchasing power parity (as per IMF report) and is heading for accelerated growth following RBI cutting repo rate by 50 bps and inflation moderating to acceptable level.”
“This should provide some confidence to the overall sentiments and help in stimulating investment. If the inflation momentum eases in near future, it will give RBI more room to cut rates further to boost investments and growth,” added Gordon.
More than half of Indian citizens (56 per cent) believe their local economy, which impacts their personal finance is good, and 57 per cent people expect that the economy in their local area will be stronger in next six months.
“The global economic indicators are disturbing, as it is evident that the sources of external growth that the Indian economy has been relying upon in the last few years will be weak. In order to further strengthen domestic demand and improve investor confidence, government has to improve the conditions for private investment, address infrastructure bottlenecks, enhance governance and public service delivery,” Gordon further said.
The Ipsos report, which examined citizens' assessment of the current state of their country's economy, said that the overall global average economic confidence swung up one point at 39 per cent last month.
The Ipsos Economic Pulse of the World survey was conducted in March 2012 among 18,775 people in 24 countries such as Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Great Britain, Hungary, India, Indonesia, Italy, Japan, Mexico, Poland, Russia, Saudi Arabia, South Africa, South Korea, Spain, Sweden, Turkey and the USA.