Indian economy on positive terrain: Credit Suisse

Mumbai, Sep 18: Despite a weakening economic data, over 60 per cent of Indian corporates, surveyed by Credit Suisse equity research, deny of witnessing any slowdown. On the contrary, 60 per cent of their Chinese Corporates accept a slowdown in a similar survey. Releasing the outcome of the survey carried out on 86 Indian companies, the Credit Suisse said. ''We believe that smaller Indian firms are yet to admit their problems. Moreover, strong demand is no longer a given for corporate India - weakening demand is the biggest contributor to the slowdown''. Policy makers should tackle effectively this weak demand, it said.

Over the near term, Indian corporates expect an improved business environment after inflation cools, the report said adding that over the longer term, Indian firms see slowing economic growth as the biggest risk to their business models (35 per cent of all corporates).

''We conclude inflation is a short-term concern. However, the biggest underlying business risk remains economic growth'' the report said.

UNI