Optimism among top business honchos of the country slid for the fourth quarter on the trot amidst worries over a delay in execution of key reforms such as the Goods & Services Tax (GST) hit by Parliamentary roadblocks, and heightened global headwinds, clouding the outlook for Asia's third biggest economy, making the case for a further interest rate cut from the Reserve Bank of India (RBI) in the near-term.
According to a report by D&B, a gauge of sentiment among the country's Chief Financial Officers (CFOs) from both the industrial and services sector fell by about 14 per cent in the July-September quarter from the previous quarter.
"The fall in the optimism level among CFOs for domestic and global macro-economic scenarios is a reflection of the rise in the perception of risks to global and domestic growth prospects," Dun & Bradstreet India said, the PTI reported.
Stalled new projects, delayed rate cuts transmission coupled with roadblocks in passage of key bills including the GST and Land Acquisition seen as crucial to improving the business and growth environment in the country & spurring foreign capital, have marred corporate sentiment.
Global headwinds including the severe China stock and currency turmoil, fears over an impending US rate hike, tough bailout conditions in Greece that are unlikely to offer any solution to Europe's lingering debt crisis, have caused massive volatility in financial markets, impacting the rupee, dashing domestic CFO optimism levels.