India Inc seen spending, investing more in 2017: Amex survey
Driven by positive economic sentiment, about 77% of senior finance executives of Indian companies surveyed expect moderate to substantial economic expansion in 2017, says the Global Business and Spending Outlook survey.Updated: Apr 27, 2017 20:01 IST
Indian companies are expected to spend and invest more this year, a survey showed on Thursday, raising hopes of faster economic growth and more hiring.
Driven by positive economic sentiment, about 77% of senior finance executives of Indian companies surveyed expect moderate to substantial economic expansion in 2017, says the Global Business and Spending Outlook survey conducted by Institutional Investor Custom Research Lab for the American Express.
Indian companies are expected to increase their spending and investment in the marketplace with 67% of them looking to focus on spending and investment supporting top-line growth while improving profitability this year.
The survey further revealed that about 37% Indian finance executives expect their company’s level of spending and investment to increase this year by more than 10%. Only 24% of global executives surveyed expected so, the report said.
“Indian companies are expected to increase their spending and investment this year, which is backed by positive economic sentiment. With focus on optimising resources and efficiently managing spends across categories, India Inc is headed towards a conducive growth chart,” said Saru Kaushal, a vice president at the American Express.
“It is our constant endeavor to facilitate finance executives around the world with business expenditure management and empower them with innovative tools for resource optimization hence positively impacting profitability.”
Compared with their global executives, Indians are twice as likely to cite hardware and infrastructure as their top IT priority, the survey said. Hardware and infrastructure will be top-most priority for companies, according to 30% of the executives from India.
This clearly indicates that companies are realising the need and importance of digitization, and therefore making a conscious effort in this direction.
Another 10% of Indian executives want to concentrate on business intelligence and data analysis capabilities, the survey showed.
Nearly 47% of the Indian executives surveyed said exports are expected to become important for their company’s growth in 2017. With the consistent growth of business in the domestic market, companies want to gradually secure their business in the foreign market as well and invest more in exports.
The survey revealed that 67% financial executives from India feel the increasing pressure in competing on the quality of customer service.
A significant 60% of Indian executives feel that improving cash and working capital management will be more important for their company this year, compared to last year.
“After years of retrenchment, many companies around the world are set this year to pursue renewed opportunities for growth.” the survey said.
First Published: Apr 27, 2017 19:58 IST