Economic recovery expected by summer

NEW DELHI, INDIA: Global economy including that of India will recover by next summer, says a global survey by workplace solutions provider Regus plc.

According to the Regus Business Tracker survey, Indian firms expected to see the signs of recovery by March 2010, which indicated a level of optimism surpassing the global average.

"Of the countries surveyed, India's prediction of March 2010 is the most optimistic," the survey said.

India's corporate outlook on economic recovery coincides with an increase in profits that surpassed the international average: 45 percent of Indian firms saw profits increase last year, compared to 40 percent of overseas companies.

Likewise, 49 percent of Indian firms experienced an increase in revenues last year as against 46 percent globally. Even among those that experienced a decrease, 56 percent expected revenues to rise in 2010.

About 85 percent of small and medium enterprises in India expected revenue increase in 2010, compared with 72 percent of large companies, the survey said.

"This suggests that small businesses will lead the economic recovery, and highlights the importance of government support and growth incentives for a section of the business community that is responsible for around half the nation's turnover," it added.

However, according to Regus country head Madhusudan Thakur, despite the signs of global recovery, businesses across the services industry were cautious.

"The relatively positive prediction from Indian firms has to be tempered with an element of caution, with astute firms remaining tightly controlled in the beginning of next year," Thakur said.

"Looking forward to India's recovery period, the bullishness of small businesses may indicate that government needs to look at the levels of support being offered to SMEs," he added.

©IANS