India business confidence News

 Confidence among Indian businesses fell to a five month low in May, and with rising inflationary pressure, there is limited scope for the RBI to cut rates, says a survey.

Pitching for a higher growth of 8 to 10 percent to eradicate poverty, Finance Minister Arun Jaitley on Wednesday said the country is no more satisfied with the current rate.

India has the potential to grow at 8-9 percent or even more in the next one to two years and global investors cannot ignore such an economy, Finance Minister Arun Jaitley said on Friday while blaming policy instability for deterring investment in the past.

In its report 'India: Time to Deliver' released yesterday DBS Bank, however, has put in a note of caution, saying, "But sustaining that optimism will not be easy."

Modi`s position as being the head of a majority government, without being hobbled by the pulls and pressures of allies, also added to the confidence levels.