8216;India economic confidence optimistic8217;

8216;Ipsos Economic Pulse of the World8217; survey said India8217;s economic confidence slightly increased by two points to 60 per cent in July compared to that in June. This makes India,the sixth most confident economy in the world,after Saudi Arabia,Sweden,Germany,China and Canada.

India8217;s economic confidence improved marginally despite uncertainties that has enveloped Asia8217;s third-largest economy,many companies and investors are optimistic about India8217;s longer-term prospects,especially in sectors driven by domestic demand, the report said.

Domestic consumption accounts for about 68 per cent of the economy,insulating it from the worst of the global slowdown,Biswarup Banerjee,Head of Marketing Communication of Ipsos in India said.

However,India certainly gives plenty of reason for pessimism. A prolonged political logjam has thwarted reforms,stalled decision-making and intensified high inflation,which has in turn forced the Reserve Bank of India to stick to tight monetary policy, he said

This has led companies to cut investments,with capital goods output plunging,foreign direct investment down and relatively week monsoon adding to the worry. But on the sunny side significant growth in consumption from rural India brings in optimism that rural consumers will come to the rescue of Indian economy, he added.

The report,which examined citizens8217; assessment of the current state of their country8217;s economy,said that the overall global average economic confidence was up by one point to 38 per cent in July.

It noted that 46 per cent of Indian surveyed believe their local economy which impacts their personal finance is good and 53 per cent of Indian respondent expect the economy in their local area would be stronger in next six months.

It is also encouraging that three of four countries that comprise the BRIC region have witnessed an improvement in terms of economic confidence after declining steadily in 2012.

Brazil rose by six points to 58 per cent,India was up two points to 60 per cent,China climbs one point to 67 per cent, Russia,however,showed a decline of four points to 29 per cent.

Individually,Saudi Arabia experienced a two-point gain to 85 per cent,followed by Sweden 71 per cent,Germany 68 per cent,China 67 per cent and Canada 63 per cent.

The survey was conducted in July among nearly 19,000 people in 24 countries.