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Indian CFOs are quite bullish about the economic growth prospects this year. According to an American Express Global Survey, 80 per cent of Indian CFOs surveyed expect a substantial or modest economic expansion in the year ahead, substantially higher than their global peers at 71 per cent.
Also, 90 per cent of Indian CFOs believe that improving cash and working capital management will be more important this year as compared to the last. The 2019 Global Survey covered 901 senior finance executives from companies around the world with annual revenues of $500 million or more. In all, 180 CFOs and other senior finance executives from Asia and 30 from companies in India participated in the study.
“Indian firms are gearing up to efficiently manage their spending and investment this year with a keen eye on the future,” Manoj Adlakha, CEO, American Express India, said.
“While they balance spending to drive top-line growth with profitability, they are pressing ahead with plans to take advantage of demographic and economic changes to stay relevant and competitive in the next 5-10 years,” he said.
Economic expansion expectations remain highest in the Asia/Australia region (79 per cent, down from 94 per cent last year) and lowest in Latin America (43 per cent, down from 52 per cent last year).
On a growth path
Indian companies continue to grow; 87 per cent of companies surveyed in India reported higher profits or much higher revenue in the last 12 months, as compared to 43 per cent last year. The number is notably higher than the average worldwide (65 per cent) and in Asia (63 per cent) for this year.
Indian CFOs continue having a positive outlook towards global trade policy, with 63 per cent expecting global trade policy to strengthen their company’s growth prospects, according to the Survey.
Spending outlook
Senior finance executives remain optimistic about the economy, the outlook for their companies and their investments for the future, according to the 2019 Global Business & Spending Outlook, a survey released by American Express and Institutional Investor Thought Leadership studio.
Over 83 per cent CFOs are looking at moderate to aggressive increase in spending and investment this year to support topline growth. As many as 33 per cent expect their company’s spending and investment worldwide to change by 10 per cent or more this year.
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