New Delhi: Driven by positive economic sentiment, Indian companies are confident about increasing spending and investment to support topline growth while improving profitability this year, a survey says. Around 67% Indian executives are positive about moderate spending and investment and financial executives are expected to spend more than last year on labour/headcount, hardware and infrastructure and financial reporting and compliance, said the Global Business & Spending Outlook survey released on Thursday.
The survey, commissioned by American Express and conducted by Institutional Investor Custom Research Lab, noted that 77% of senior finance executives of Indian companies surveyed expect moderate to substantial economic expansion in 2017.
“Indian companies are expected to increase their spending and investment this year which is backed by positive economic sentiment. With focus on optimising resources and efficiently managing spends across categories, India Inc. is headed towards a conducive growth chart,” Saru Kaushal, vice-president and general manager, Global Corporate Payments, American Express said.
IT spending is a priority for this year, as companies are realising the need and importance of digitisation and are making a conscious effort in this direction.
The survey further said exports are likely to become much more important for the growth of companies and corporate India is also focused on enhancing customer service.
“With the consistent growth of business in the domestic market, companies want to gradually secure their business in the foreign market as well and invest more in exports,” the survey said.
Moreover, a significant 60% of Indian executives feel that improving cash and working capital management will be more important for their company this year, compared to last year.