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With an eye on profitability and global expansion, India’s economic momentum appears to be picking up pace
For the first time since the start of the pandemic, Grant Thornton’s global index of mid-market health is back on an upward trajectory. 74% mid-market business leaders, surveyed in India, are optimistic about the Indian economy, while the same stands at 69% globally, according to Global Business Pulse*. This biannual Grant Thornton Global Survey gathers responses from nearly 5,000 business leaders in 29 economies, including the G20.
The outlook remains more-or-less the same, compared with H2 2020 survey results, but one can see a tremendous achievement by the mid-market businesses outlook pointing towards a wider economic recovery. “Indian economy is on a steady path of recovery. India’s long-term fundamentals remain strong and supported by various policy reforms, the investment and business activity are likely to gain full steam ahead as things open further in India and overseas. Living with the pandemic is inevitable, however, businesses are now better equipped than before in ensuring that the recovery remains stable”, says Vikas Vasal, National Managing Partner, Tax, Grant Thornton Bharat.
| Future business expectations | Investment sentiments | Global expansion |
| 69% expect to increase their turnover and exports |
70% to invest in technology |
57% to increase business to number of countries they sell to |
| 68% to increase profitability |
68% followed by R&D |
56% to increase revenue from non-domestic markets |
| 66% staff skills |
54% to increase ratio of employees focused on non-domestic markets |
|
| 65% plant & machinery |
At the heart of this recovery is a much stronger outlook by the mid-market business. 69% are expecting to grow their turnover in the next 12 months, while 68% are expecting an increase in profitability. The improved outlook chimes with the World Bank’s forecast of a 5.6% growth in the world economy in 2021 and what it terms as ‘its strongest post-recession pace in 80 years’. Also, investment sentiments by these businesses, are tilting towards technology (70%), R&D (68%), staff skills (66%) and physical plants and machinery (65%).
“Initiatives such as Aatmanirbhar Bharat Abhiyan, Production-Linked Incentive Scheme, have opened several avenues for business in the country to expand their horizons and compete globally. The survey has tracked shifts in attitudes towards internationalisation during this pandemic. With 57% of companies looking to expand their geographic sales footprint this year – the third highest in the sample - international sales and a larger global footprint appear to be a real priority for businesses.” notes Vasal.