Despite the economic uncertainty induced by COVID-19, 71 per cent of Indian business leaders are optimistic about the economy’s rebound to higher growth in 2021, than the global average of 57 per cent for world economic recovery, reveals Grant Thornton International Business Report, the bi-annual survey covering nearly 5,000 business leaders in 29 nations.
While the report ranks India’s optimism the highest for growth in export in 2021, its increase in investment expectations is highest in new buildings, second-highest in plant and machinery and research and development (R&D) and third-highest in technology, among the 29 surveyed countries.Despite the economic uncertainty induced by COVID-19, 71 per cent of Indian business leaders are optimistic about the economy's rebound to higher growth in 2021, than the global average of 57 per cent for world economic recovery, reveals Grant Thornton International Business Report, the bi-annual survey covering nearly 5,000 business leaders in 29 nations.#
There is a stark juxtaposition in the export growth expectation levels of Indian businesses, which stands at 65 per cent, against the Asia-Pacific (APAC) region average of 30 per cent. In the Western part of the world, 46 per cent % of leaders in North America foresee a surge in exports, the European Union export growth expectation stands at only 24 per cent.
Interestingly, 43 per cent of businesses in India claimed to grow their exports by more than 5 per cent in 2020.
Said Vishesh C Chandiok, chief executive officer of Grant Thornton Bharat, “The government’s consistent push for ‘Make in India’ and rising interest from companies and governments across the globe in meeting their sourcing requirements from India will pave the way for robust exports. Relentless collaboration between the government and manufacturers and commitment to innovation will go a long way in improving exports. Development of an indigenous supply chain of PPEs within 60 days is one such success story.”
“In our research, increasing investment in infrastructure and reduction in tax and compliance costs have been highlighted as key pillars of recovery. Along with the Aatmanirbhar (self-reliance) announcements of 2020, Budget 2021 has provided the economy with a big push – India is at a seminal moment and we now need to sustain the economic momentum that we will see this year and throughout the rest of this decade,” he added in a press release.
The survey also highlights various measures the government can take to help India emerge as a cost-competitive alternative to attract companies looking to diversify their global manufacturing hubs and supply chains.
Sixty one per cent of respondents cited ease of access to capital as the top enabler. While 59 per cent of respondents seek simplification of tax and labour laws, 55 per cent see logistics and infrastructure development as game-changers.
Fibre2Fashion News Desk (DS)
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