Indian Companies Embrace Global Expansion and Risk Taking Amid Geopolitical Challenges
Synopsis
Key Takeaways
New Delhi, April 14 (NationPress) Nearly all Indian enterprises are gearing up for global expansion, displaying a notable readiness to embrace calculated risks amid escalating geopolitical challenges, as indicated by a recent report.
A survey by HSBC reveals that 98% of Indian firms intend to enhance their cross-border trade and investment within the next five years, the highest rate among all markets analyzed, despite ongoing global uncertainties.
Furthermore, 94% of those surveyed expressed a greater willingness to take calculated risks compared to five years ago, surpassing the global average of 87%, according to the findings.
The report also revealed that 86% of senior executives and institutional investors in India are adjusting their strategies for long-term success, with 95% acknowledging that economic fluctuations are now a permanent aspect of the global economy.
Over 91% of respondents reported that they have revised their capital allocation approaches due to the increased uncertainty, and 94% are actively investing more in high-growth markets.
Indian companies have shown the most positive outlook for cross-border expansion globally, with 86% anticipating a rise in their overseas capital investments over the next three years, compared to a global average of 73%.
About 93% of participants believe that cross-border financial flows will increasingly become more regional, according to the report.
Ajay Sharma, Head of Banking at HSBC India, stated, “These findings indicate a significant shift in how growth will be generated and captured.”
Sharma further noted that with robust domestic growth, heightened international ambitions, and stronger ties with both new and existing markets, India is poised to become a significant player in global trade and investment.
In terms of preferred markets, the UAE (cited by 58%) and Saudi Arabia (by 45%) were highlighted as key targets for Indian businesses, while the UK and North America were mentioned by 56% and 43% of respondents, respectively.
Moreover, India leads surveyed markets with 71% identifying AI and data infrastructure as crucial factors influencing their market exposure decisions, 20 percentage points above the global average.
Additionally, 98% of respondents believe that digital assets will significantly transform capital markets over the next decade, with 49% anticipating that global markets will primarily function on digital infrastructure by 2035, the report concluded.