The Composite Business Optimism Index for India witnessed a record down fall of 28.1 per cent in the last quarter of 2008. The index is prepared by a leading global market tracking and information services firm Dun and Bradstreet (D&B). The business index is widely used by investors to access the pulse of the business community in the country.

It is the largest ever fall in the business index so far. It stood at 193.2 in the corresponding quarter of 2007. The business index fell by 17 per cent points on a year-on-year basis due to subdued demand conditions prevailing in the country.

The chief operation officer of Dun & Bradstreet, Kaushal Sampat said the global financial crisis is a major cause of decline in investment in India. The business community is hesitating to invest in the market following global slowdown pressure. The moderation in economic growth and high inflation rate also affected the business index. The RBI's monetary policy also contributed to slowdown the index.

Information technology, financial services, broking houses and trade segments are also likely to be affected by the slowdown. The demand conditions would remain subdue for future, which would further affect the business activities.