Depreciating Rupee drags down India's economic confidence: Ipsos Study

India’s economic confidence dropped due to depreciation of rupee on global cues and subdued performance by the corporate sector, according to a report by global research firm Ipsos.

According to the “Ipsos Economic Pulse of the World” survey, India's economic confidence dropped by 4 points to 62 percent in the month of June compared to the month of May 2013, dragging its rating down to be the joint sixth most economically confident country in the world sharing the rank with Germany.

The Scandinavian country Norway which has the second-highest GDP per capita – a new addition to the list of 25 countries surveyed - topped the list with 98 percent, followed by Saudi Arabia (81%), Sweden (72%), and China (66%), Canada (66%), Germany (62%) and India (62%).

“The rupee in the last week of June sank to an all-time low of 60.76 against dollar on account of heavy capital outflows and month-end dollar demand from importers. Depreciating rupee and subdued performance of the corporate sector has dragged down India’s Economic Confidence”, said Mick Gordon, CEO of Ipsos in India.

“The recent slowdown in growth can primarily be attributed to domestic supply bottlenecks, policy uncertainty, project delays, poor investor confidence and low external demand. Thankfully moderating inflation has provided some succor to the stressed economy,” added Gordon.

Four in ten (40%) Indian Citizen believe their local economy which impacts their personal finance is good, an increase of 4 points and an optimistic 46 per cent people expect that the economy in their local area will be stronger in next six months.

The online Ipsos Economic Pulse of the World survey was conducted in May 2013 among 18,513 people in 25 countries.