Are Indian Firms Shifting Focus to Domestic Markets Amid Global Uncertainties?
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Synopsis
As global uncertainties loom, Indian firms are making strategic pivots. With <b>87 percent</b> focusing on domestic markets, businesses prioritize local needs for stability. Discover how this shift reflects resilience and adaptability in the face of evolving trade dynamics.
Key Takeaways
- 87 percent of firms are focusing on domestic markets.
- 76 percent are reevaluating long-term strategies.
- 91 percent aim to enter new markets.
- 82 percent are exiting high-risk markets.
- 83 percent anticipate cost increases in the next six months.
New Delhi, May 29 (NationPress) In light of global uncertainties, Indian companies are reassessing their trade strategies to align with changing market conditions. A recent report from HSBC Global reveals that 87 percent of businesses are now turning their attention to domestic clients, emphasizing local customer needs to ensure stability.
The study indicates that 76 percent of Indian firms are reevaluating their long-term business plans in reaction to evolving trade policies. Additionally, 80 percent are exercising increased caution regarding expansion and investment due to trade-related uncertainties, as highlighted in the 'HSBC Global Trade Pulse Survey'.
This survey analyzed the business strategies and sentiments of 5,750 international companies across 13 global markets, including 250 Indian firms, focusing on tariffs and trade.
“Indian businesses are showcasing significant resilience and adaptability amidst global trade unpredictability. The findings reveal a crucial transition, with firms redirecting their focus towards domestic markets while actively seeking new regions to minimize risks and capitalize on emerging opportunities,” stated Runa Baksi, Head of Global Trade Solutions at HSBC India.
This dual strategy highlights the agility of Indian enterprises in navigating complex trade dynamics while maintaining a positive outlook for growth, Baksi added.
As businesses confront current trade challenges, they are implementing various strategies to manage uncertainties. A striking 91 percent of Indian firms are aiming to penetrate new markets, especially in areas less impacted by trade disruptions, while 87 percent are prioritizing their focus on domestic markets, reducing international exposure.
Moreover, 82 percent are opting to withdraw from high-risk markets affected by trade uncertainties, and 87 percent are looking into mergers and acquisitions to strengthen their market presence or enhance supply chains through strategic alliances.
The survey also reveals that 83 percent of Indian firms (compared to 73 percent globally) expect a significant increase in costs over the next six months due to trade uncertainties, with 51 percent concerned about rising expenses from tariffs and other trade factors.
To tackle these challenges, 42 percent of Indian companies have already modified their pricing strategies to accommodate increased costs, while 48 percent plan to make similar adjustments. Additionally, 45 percent of Asian firms have raised their inventory levels to counter supply chain disruptions, with another 48 percent of Indian firms intending to follow suit, according to the report.
Point of View
I recognize the challenges Indian businesses face amid fluctuating global trade dynamics. The shift towards domestic markets signifies not only a response to uncertainty but also an opportunity for growth and stability. Our firms are showcasing remarkable resilience, adapting strategies that align with local needs while exploring new avenues. It's a pivotal moment for Indian enterprises, and we must support their journey towards sustainable growth.
NationPress
13/06/2025
Frequently Asked Questions
What percentage of Indian firms are shifting focus to domestic markets?
According to a recent HSBC Global report, 87 percent of Indian firms are shifting their focus towards domestic markets.
Why are Indian businesses focusing on local customers?
Indian businesses are prioritizing local customers to ensure stability amid global trade uncertainties, as highlighted in the HSBC report.
What strategies are Indian firms adopting due to trade uncertainties?
Indian firms are reassessing their long-term strategies, entering new markets, and considering mergers and acquisitions to strengthen their positions.
How many firms anticipate a cost increase in the next six months?
The survey indicates that 83 percent of Indian firms expect significant cost increases in the next six months due to trade uncertainties.
What measures are companies taking to address rising costs?
To manage rising costs, 42 percent of Indian companies have adjusted their prices, with another 48 percent planning similar adjustments.
