The Hindu Business Line : India Inc.'s faith in political leadership dips

NEW DELHI: India Inc.'s confidence in the political leadership to pursue economic reforms and deal with international trade negotiation has dipped, says an NCAER survey conducted ahead of the upcoming general elections.

The Political Confidence Index (PCI), which is the barometer of the confidence of business sector in the political management of the economy, has slipped by 4.3 per cent in January, the quarterly report of the economic think-tank has said.

“Among the five factors that are found to be pulling down the PCI, managing international trade negotiations and pushing the reform forward are significant in undermining confidence in the political management,” it said.

However, the businesses have posed greater faith in the leadership in managing overall economic growth, inflation control and political climate, it added.

Incidentally, India's economic growth crashed to 5.3 per cent in the third quarter of 2008-09, the lowest quarterly expansion in over five years, against an impressive 8.9 per cent a year ago.

Contraction in agriculture and manufacturing output had had a main role in lower GDP growth. Inflation has, however, eased to nearly seven-year low of 2.43 per cent for the week ended February 28.

Among four regions, Northern region's firms presented higher confidence in the political management of the economy than in October, the NCAER report said, adding, the index gained 25.2 points in the region. - PTI

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