Indian businesses more optimistic about recovery; ready for investment but fear about this
Businesses in India expect that the losses incurred due to the coronavirus pandemic will reverse faster than those in the other countries. 87 per cent of Indian businesses expect to return to pre-Covid profitability levels by the end of 2022, said the Navigator 2020 India report by HSBC. Despite ongoing protectionism, businesses are positive about finding routes to international markets, the report added. 93% of companies expect their international trade prospects over the next 1-2 years to be positive. However, compared to previous years, now more companies think that countries are becoming more protective of their domestic businesses. Businesses also believe that a reduction in international trade would restrict employee movement, increase costs, and decrease demand.
Despite the losses, the Indian businesses are willing to invest. Nine in ten companies intend investing more next year, compared with about two-thirds globally and in APAC. For around two-thirds of companies, the immediate investment priorities are the customer experience; marketing and sales channels; employee wellbeing and upskilling; and transforming supply chains; to make them more secure. Adding to it, they also plan to increase or maintain investment in key technologies.