The two countries topped the McKinsey survey of economic confidence

Business leaders in India and China top the world economic confidence league and hold the most optimistic outlooks for the future of their national economies, according to a survey of 5,500 global business executives by consultancy group McKinsey.

The survey, published this month, found particularly high levels of confidence in India with almost 60% of the world’s business leaders viewing the country as an important pool of future talent for their organisations. It also showed that 32% of the largest companies surveyed in Europe and 29% in North America are planning to set up R&D operations in the country.

Indian executives appear to hold strong confidence in the country’s new government to push through its economic liberalisation programme. And more than 65% expect the country’s economy to improve over the next six months.

While direct foreign investment in India continues to lag behind China, the overheating Chinese economic picture appears to be causing significant concerns, especially outside of the Asia Pacific region. Only 7% of North American business leaders say they are confident in the Chinese government’s ability to manage the pace of growth.