Business looks forward to new Indian leader

MORE than half of India’s companies are positive that business conditions will be better after the country’s long election, according to a survey released today.

According to Deutsche Borse’s latest MNI indicators for the country, 51.5 per cent of the firms surveyed say that they will perform better after the five-week election, while only one per cent believe things will get worse.

India’s growth has slowed down in recent years, the rupee has fallen in value and inflation has risen.

The group hinted that the optimism could be seen as support for controversial Hindu nationalist candidate Narendra Modi, who is seen as pro-business.

“While a win by business friendly candidate Modi is seen as the best outcome for Indian businesses, a result which delivers a stable and strong government is the main requirement to get the economy back on course,” said Phillip Uglow, chief economist for MNI Indicators.

Despite the clear optimism for a fresh government, businesses reported a decline in current conditions, with the indicator falling to 61.9 in April, from 65.5 in March. Any figure over 50 signals an improvement in the situation.