Amid revival in the economy, post the severe impact of Covid-19′ second wave, 74 per cent mid-market business leaders in India are optimistic about the Indian economy, as against 69 per cent globally, according to a survey by Grant Thornton.
For the first time since the start of the pandemic, Grant Thornton’s global index of mid-market health is back on an upward trajectory.
As per the Global Business Pulse, the outlook remains more or less the same, compared with H2 2020 survey results, but one can see a tremendous achievement by the mid-market businesses outlook pointing towards a wider economic recovery.
“Indian economy is on a steady path of recovery. India’s long-term fundamentals remain strong and supported by various policy reforms, the investment and business activity are likely to gain full steam ahead as things open further in India and overseas,” Grant Thornton Bharat National Managing Partner, Tax, Vikas Vasal, said.
“Living with the pandemic is inevitable, however, businesses are now better equipped than before in ensuring that the recovery remains stable,” he said.
At the heart of this recovery is a much stronger outlook by the mid-market business. Around 69 per cent are expecting to grow their turnover in the next 12 months, while 68 per cent are expecting an increase in profitability.
The improved outlook chimes with the World Bank’s forecast of a 5.6 per cent growth in the world economy in 2021 and what it terms as “its strongest post-recession pace in 80 years”. Also, investment sentiments by these businesses are tilting towards technology (70 per cent), R&D (68 per cent), staff skills (66 per cent), and physical plants and machinery (65 per cent).
Vasal noted that initiatives such as ‘Aatmanirbhar Bharat Abhiyan’, and Production-Linked Incentive Schemes, have opened several avenues for business in the country to expand their horizons and compete globally.
“The survey has tracked shifts in attitudes towards internationalisation during this pandemic. With 57 per cent of companies looking to expand their geographic sales footprint this year, international sales and a larger global footprint appear to be a real priority for businesses,” he said.