Traversing across the hope and fear

Each Indian firm has to reconcile internal strength with three external threats

Large Indian firms today see a combination of internal strength and external difficulties. There is a new level of supply chain disarray. The spectre of macroeconomic instability is back with high and variable inflation, and developed market (DM) responses to this inflation will roil the global financial system. There are stubborn economic problems in the Indian household, which hampers the demand side. While the large firms have improved revenue growth and profitability, with buoyant exports growth, the optimism within successful firms is tempered by a strategic sense of the difficult landscape. The recent gains in private investment reflect cautious strategic