1. Embargoed until 9:45 A.M. Mumbai Time, 19 June 2014
Media Release
MNI India Business Indicator Rises to 69.2 In June
Production and New Orders Pick Up
push business sentiment higher in June as corporates
expect to see the new Prime Minister take swift action
to bolster growth.”
“The Modi government has its work cut out to live up
to the high expectations being placed upon it. While
our data is consistent with a pick-up in the economy
in the latest quarter, there is a clear danger that the
recovery takes longer than many are expecting.”
Business confidence rose to the highest level since
the survey began in 2012, amid growing optimism
that the new government will revive the economy and
improve the business environment.
The MNI India Business Indicator rose to 69.2 in
June from 67.0 in May, led by higher optimism
among manufacturing companies, whose confidence
rose to the highest level in 12 months. The
manufacturing sector is set to be central to the new
government’s plan for turning the economy around
and our survey shows they already sense positive
changes ahead.
There were signs of a revival in demand. New Orders
increased to the highest since September 2013,
while Order Backlogs, which have trended upwards
since the start of the year, jumped back above the
breakeven 50 level.
Companies were more optimistic about employment
levels, and they expected to expand their workforce
in the coming months in anticipation of increased
demand.
Companies’ inflationary expectations eased, as
future expectations for Input Prices fell to a record
low level, helped by the appreciation in the rupee.
Commenting on the latest survey, Chief Economist of
MNI Indicators Philip Uglow said, “Euphoria following
Modi’s landslide election win has no doubt helped to
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Editorial content:
Philip Uglow,
Chief Economist
MNI Indicators
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MNI India Business Indicator
Current Conditions
Future Expectations

2. Media Release 2
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Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved.
About MNI Indicators
MNI Indicators specialises in producing business and consumer surveys designed to present an advance picture of the economic landscape and
highlight changing trends in business and consumer activity. The timely reports explore attitudes, perspectives and confidence across the globe,
including China, India and Russia. Alongside MNI Indicators’ core focus on consumer and businesses surveys in emerging markets, MNI Indicators
produces the renowned Chicago Business Barometer (Chicago PMI), a key leading indicator of the US economy. MNI Indicators is part of MNI, a
leading provider of news and intelligence, a wholly owned subsidiary of Deutsche Börse AG, one of the largest worldwide exchange organisations.
For more information, please visit www.mni-indicators.com
Notes to Editors
Please source all information to MNI Indicators.
MNI India Business Sentiment is a monthly poll of Indian business executives at companies listed on BSE (formerly known as the Bombay Stock
Exchange). Companies are a mix of manufacturing, service, construction and agricultural firms.
Respondents are asked their opinion on whether a particular business activity has increased, decreased or remained the same compared with the previous
month as well as their expectations for three months ahead, e.g. is Production higher/same/lower compared with a month ago?
Diffusion indicators are then calculated by adding the percentage share of positive responses to half the percentage of those respondents reporting no
change. An indicator reading above 50 shows expansion, below 50 indicates contraction and a result of 50 means no change.
Data is collected via telephone interviews. More than 200 companies are surveyed each month.
The main MNI India Consumer Indicator is derived from five questions, two on current conditions and three on future expectations:
1) Current personal financial situation compared to a year ago
2) Current willingness to buy major household items
3) Personal financial situation one year from now
4) Overall business conditions one year from now
5) Overall business conditions for the next 5 years
Indicators relating to specific questions in the report are diffusion indices with 100 representing a neutral level, meaning positive and negative answers
are equal. Values above 100 indicate increasing positivity while values below show increasing negativity.