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Indian companies optimistic on business growth in Asean: survey
A SURVEY of senior executives from 41 companies based in India has revealed that these companies, which focus on the India-Asean corridor, are highly optimistic about business growth in the Asean region.
Commissioned by Standard Chartered, its findings showed that all companies surveyed expect their business to increase production in Asean, while a majority 93 per cent of them project growth in revenue over the next 12 months.
Indonesia (63 per cent) is considered the top target country within Asean to offer the best expansion opportunities, followed by Vietnam (49 per cent) as well as Malaysia and Singapore (46 per cent each).
It was also found that 83 per cent of respondents agreed Singapore was an ideal place to set up their regional sales and marketing headquarters.
Standard Chartered also noted that the Regional Comprehensive Economic Partnership (RCEP) is also expected to attract more investments into the 10-nation bloc.
Some 63 per cent of respondents indicate that their company intends to increase investments into Asean over the next 3-5 years, on the back of the ratification of the RCEP agreement.
Highlighting Asean as one of India’s largest trading partners, Gaurav Bhatnagar, Standard Chartered’s head of trade and working capital, India and South Asia, said he expects the trade corridor to “grow rapidly on the back of a strong government impetus and a perceptible shift in consumer demand in favour of clean technology”.
“Sectors like IT services, trading, pharmaceuticals, automobile (particularly electric vehicles) and renewable energy offer significant export opportunities to Indian firms,” he added.
Despite the opportunities, survey participants appeared to remain wary of risks within the region.
Covid-19 and other health crises (85 per cent) was the top identified risk, followed by a slow revival of the economy and drop in consumer spending (73 per cent), and geopolitical uncertainty and trade conflicts (54 per cent).
Respondents however believe these risks may be mitigated by focusing on entering new partnerships or joint ventures to increase market presence (73 per cent), with many seeking banking partners with one-stop corporate financing and capital raising services (59 per cent) to support their growth.
Source: https://www.businesstimes.com.sg/asean-business/indian-companies-optimistic-on-business-growth-in-asean-survey