News: 'Indian business confidence up 7.6% in Q2'

(RTR 27/10/2006) New Delhi - Indian business confidence rose in July-September from a slump in the previous quarter on the back of a booming stock market, fall in oil prices and strong growth, an economic think tank said on Friday.

The business confidence index (BCI) for July-September rose 7.6 per cent to 152.5 from 141.7 in the previous quarter, the National Council for Applied Economic Research (NCAER) said.

It has risen 4.5 per cent from the same quarter in 2005.

"The rise in BCI comes on the back of recovery of the capital market, deceleration in international crude oil prices, close to normal rainfall and a strong economic growth in the first quarter of the current fiscal," it said in a report.

The overall economic conditions index rose 11.5 per cent to 73.6 points while the investment climate index was up 13.2 per cent at 59.2 points.

Asia's fourth largest economy expanded at an annual rate of 8.9 per cent during April-June, slower than 9.3 per cent in the earlier quarter.

India aims to sustain 8 per cent growth rate this fiscal year and take it up to 10 per cent by 2011/12.