Multinational corporations (MNCs) expect their India operations to notch up growth rates of 15-30% over the next three years. Even from a low-cost sourcing perspective of MNCs, India figures among the top three countries behind China and Korea, says a report India Meets the World by management consulting major Accenture. | |
| While growth rates in mature markets are ambling at single digits, MNCs are betting high on countries like India with almost 70% of the MNC respondents in the study expecting their Indian operations to grow fast. Only 10 per cent of companies expected to grow at less than 10%. "The estimates also reflect the confidence in the sustenance of the current economic boom that's underway in India," says the report. |
| |
| While growth is high on their agenda, multinationals also cited infrastructure bottlenecks as the biggest challenge while doing business in India. |
| |
| The study also focused on Indian companies that are globalising rapidly. Close to 30% of globalising Indian companies have more than 50% of their turnover from the international markets. While that looks good from the outset, Accenture executives say that companies must proceed with caution. "Europe and North America are low growth economies. If Indian companies plan their growth in these markets, they will have to take market share from others, which may not be very easy," said Greg Cudahy, global managing partner (supply chain strategy) of Accenture. |
| |
| He added that Indian companies risked being uncompetitive if they did not factor in issues like currency fluctuations from a future perspective. |
| |
| The study also spoke about the growing relevance of sourcing from low- cost countries. The 100 companies that responded for the study intended to increase their sourcing from low-cost countries from the current 12.1%to 17.4% over the next three years. |
| |
| Click here for the Accenture report |
| |
|
| |
