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Indian business leaders are the most optimistic lot in the Asian region in terms of growth prospects in the next five years, reveals a survey by Standard Chartered.
About 97 per cent of the chief executive officers and chief financial officers of Indian businesses surveyed were confident their businesses could grow in the next five years. They expect an average anticipated rise in turnover of 54 per cent.
The overall sentiment among Asian countries surveyed - China, Indonesia, Malaysia and India - is bullish. About 86 per cent respondents hope their turnover would increase and 75 per cent were planning an expansion of their business in the next five years.
This confidence regarding business growth comes from the increasing demand for products and services, which is mainly driven by the rising middle class. Overall the average anticipated rise in turnover is 39 per cent and the managements in these companies expect headcount to increase by 32 per cent.
In the Indian context, as many as eight in 10 of the businesses who plan to grow also expect to take more workers in the next five years, with headcount expected to increase by an average of one-third. Expanding the business internationally is also one of the top priorities of Indian companies.
Seventy-three per cent respondents are planning to increase their sales in existing foreign markets, and 71 per cent are looking at expanding the number of international markets in which they operate.
The survey states that 85 per cent of the home-grown companies already have an international presence and are typically doing business across Europe, West Asia and China.
However, the companies across the Asia are plagued with challenge from rising cost and absence of adequate funding, lack of political instability is another concern. The concerns around the political environment are more prominent in Malaysia with 64 per cent of the companies believing it to be a challenge, compared to 22 per cent in India.
Indian companies also believe consolidation might be the key. The survey reveals 47 per cent of the Indian companies are aiming for mergers in the next five years.
"Mid-sized companies are crucial engines of economic growth and job creation across Asia, and increasingly active in global trade. They are the Tatas and Alibabas of tomorrow, and this study shows that slowing growth in the region has not dented their confidence in the future. Far from it, companies are looking to take on more workers and expand into new markets, growing their turnover in the next five years," said Manish Jain, managing director and regional head, commercial clients, South Asia at Standard Chartered CEOs and CFOs of 300 mid-sized companies with an annual turnover of $30-100 million across India, China, Indonesia, Malaysia were surveyed.
