India improved its ranking by one spot in a global index of business optimism, with policy reforms and Goods and Services tax (GST) expected to become a reality soon, says a survey. According to the latest Grant Thornton International Business Report, India was ranked second on the optimism index during the third quarter .

Indonesia took the top spot, with the Philippines coming in third. India was ranked third during the April-June period after being on top for two consecutive quarters. “The improvement in the optimism ranking in the recent past clearly reflects that the reform agenda of the government and its efforts on improving the climate for doing business are having an impact,” Grant Thornton India LLP Partner India Leadership Team Harish H V said.

As per the survey, 59 % of the respondents have quoted this as an impediment in the growth prospects compared to 64 % in the previous quarter. The report is prepared on the basis of a quarterly conducted global business survey of 2,500 businesses across 36 economies. Meanwhile, in terms of revenue expectations, India slipped to third position from top in the previous quarter. In spite of the downturn, India is much ahead of China where only 30 % respondents expect an increase in revenue, whereas in India, 85 % respondents have voted in favour of increasing revenue. The survey further noted that 68 % of respondents have voted for an upsurge in selling prices.

On this parameter too, China lags India with only 10 % of respondents expecting an upsurge in selling prices. The global average is 19 %.