Indian CFOs to push forward with capital spending plans

Indian CFOs to push forward with capital spending plans

Senior Indian finance executives are bullish about the domestic economy and the balance is shifting more towards a growth outlook with business confidence on a high, according to the seventh annual American Express/CFO Research Global Business and Spending Monitor. 

A phenomenal 100 per cent of the Indian CFOs plan to increase their spending and investment activities this year, the Spending Monitor said. Indian CFOs led the Asian region in terms of their investment plans across various business functions including transportation and logistics, computer hardware, enterprise IT, and business and professional services.

While CFOs from China, Hong Kong and other Asian countries significantly scaled back their expectations for their local economies, 86 per cent of Indian CFOs demonstrated a leap of faith in their local economy compared to last year. With the environment looking positive for India, a high 93 per cent of Indian CFOs might increase spending on business travel in 2014.

A sizeable 77 per cent of Indian CFOs expect their company’s sales to increase the most in the Indian subcontinent while another 67 per cent expect growth from within Asian markets, followed by 67 per cent expecting growth from the Asian region.Indian CFOs demonstrated the highest confidence in their local economy.

Seventy-nine per cent of Indian CFOs foresee expansion in the domestic economy as a key driver for business growth, while 76 per cent expect changes in regulatory, statutory or accounting requirements to have a positive effect on their company’s growth.

Indian CFOs led the Asian region in terms of their investment and spending plans across business functions, including business travel, with 87 per cent planning to increase spending and investment; 30 per cent said they would increase spending and investment aggressively.

Eighty-seven per cent of CFOs said that they need to increase their investment and spending to remain competitive; while another 83 per cent said they would increase spending and investments to protect shares in the current market. Ninety per cent plan to pursue business innovation and growth; 80 per cent think they need to increase their spending and investment to grow through acquisitions and business partnerships; 86 per cent will use it to enter new markets; and another 83 per cent to improve financial returns to owners and shareholders.

Across the population of respondents, survey results indicate that companies plan to invest more in expanding market access (57 per cent), improving business intelligence and analytics (57 per cent), improving production-process efficiency (55 per cent) and new product/service development (55 per cent). 

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