Soaring inflation and global recessionary trends notwithstanding, India has emerged as the most optimistic economy with majority of the privately-held businesses in the country feeling positive about their prospects for the next year, says a report.

According to a recent report prepared by advisory firm Grant Thornton India, the country is the most optimistic along with Philippines.

However, the report said India is witnessing a slowdown and projected GDP of 7.9 per cent for this fiscal.

"Despite the global recessionary trends, mounting inflation and prospects of elections in the near future, pivately held businesses in India have shown the highest level of optimism about their prospects for next year.

"With an overall optimism/pessimism balance of +95 per cent, the Philippines has joined India at the top for the first time, while Japan has remained at the bottom this year with a balance of -49 per cent," the advisory firm said.

The Country Focus International Business Report 2008 said that India's expected employment growth is pegged at 74 per cent which is higher than global forecast at 33 per cent.

Further, India's optimism for exports this year at 37 per cent, is also above global average of 18 per cent.

"PHBs in India are less optimistic about their revenue prospects in 2008 (+84 per cent) compared to 2007 (+92 per cent). However, their levels of optimism regarding revenue performance are well above the global average of +63 per cent," Grant Thornton India's National Markets Leader Monish Chatrath said.

The report examined the attitudes, plans and trends of 7,800 privately held businesses in 34 economies. For India, the advisory firm looked at key issues that PHBs need to manage to survive the economic downturn.

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