Finance executives in India are overwhelmingly optimistic about the growth prospects of the country during the year and are looking to expand business activities locally, says a survey.
New Delhi: Finance executives in India are overwhelmingly optimistic about the growth prospects of the country during the year and are looking to expand business activities locally, says a survey.
As per the ninth annual American Express/CFO Research Global Business and Spending Monitor, 86 percent of Indian respondents are expecting the economy to grow in 2016.
Additionally, 90 percent of Indian executives polled say company's growth will depend more on exports in this year as compared to the previous year.
Further, 80 percent of the Indian respondents cited that they may increase their focus on domestic market given the economic and political uncertainty in other countries. Further, 77 percent of Indian leaders are looking to expand business activities locally including sourcing, distribution, production and outsourcing.
At the country level expansion, India is followed by Mexico where 79 percent of CFOs expects economic expansion, United Kingdom (75 percent), Argentina and the US (73 percent each), Australia (64 percent), Canada (63 percent), Singapore (60 percent) and China (58 percent).
"India is leading the way in terms of both business confidence and investments. As expected, owing to prevailing uncertain economic environment globally, most companies are cautious about spending and investments. The focus is on optimising cash flow and using it judiciously to grow and protect the business," American Express India Country Business Head, Global Corporate Payments Saru Kaushal said.
"Broadly, the game plan seems to be focused on reducing the risk exposure by focusing more on domestic markets, along with increased investment in sales and marketing activities, risk management and security, and adding capacity for production or service delivery," he added.
All of Indian executives polled plans to increase their spending and investment to drive their top line and bottom line.
The survey is based on responses from 30 senior finance executives at companies with annual revenue of at least USD 500 million located in India.