Around 100% of Indian companies are planning global expansion and are increasingly open to taking calculated risks amidst growing geopolitical tensions, as per a recent report. A survey by HSBC revealed that 98% of Indian firms aim to boost cross-border trade and investment in the next five years, the highest among all markets surveyed despite ongoing global uncertainties.
Moreover, the report noted that 94% of Indian respondents are more inclined to take calculated risks now compared to five years ago, surpassing the global average of 87%. Senior leaders and institutional investors in India are also repositioning their strategies for the long term, with 86% doing so, while 95% believe that economic volatility is now a permanent aspect of the global landscape.
Additionally, over 90% of respondents have adjusted their capital allocation strategies due to increased uncertainty, with 94% actively increasing investments in high-growth markets. Indian firms are particularly optimistic about overseas capital deployment, with 86% expecting an increase in the next three years, higher than the global average of 73%.
Furthermore, the survey highlighted that 93% of respondents anticipate cross-border flows to become more regionally focused. According to Ajay Sharma, Head of Banking at HSBC India, these findings indicate a significant shift in growth patterns and capture strategies, with India emerging as a dynamic force in global trade and investment.
In terms of preferred markets, Indian businesses are eyeing the UAE (58%) and Saudi Arabia (45%) as key destinations, while the UK and North America are also popular choices. Notably, India leads in considering AI and data infrastructure crucial for market exposure decisions, with 71% emphasizing this aspect, significantly above the global average.
Moreover, 98% of respondents foresee digital assets reshaping capital markets in the next decade, with nearly half expecting global markets to predominantly operate on digital infrastructure by 2035, according to the report.
