Optimism peaks as India Inc. invests in growth, technology and upskilling: IBR 2023 insights

India Inc’s optimism surpasses APAC’s average with a 14% margin; profitability expectations soar with 83% of firms projecting growth.

Despite global economic sentiments showing signs of decline, India emerges as a beacon of positivity. The latest data from the International Business Report (IBR), Grant Thornton’s global survey of mid-market companies, reveals that 80% of Indian mid-market businesses maintain a positive economic outlook in the next 12 months, up from 78% in H1 2023. Conducted in the latter half of 2023 (June-December), while India flourishes, confidence in their respective country’s economic outlook declined from 67% in H1 2023 to 66% in H2 for the Asia-Pacific (APAC) region.

Sharing his thoughts on the survey results, Siddhartha Nigam, Partner, Grant Thornton Bharat, said, “The bullish outlook extends beyond just profit expectations. 83% of Indian mid-market firms expect growth in revenue in the coming year, as India’s expansive domestic market offers lucrative expansion opportunities. Government initiatives such as ‘Make in India’, improvements in the ease of doing business, and the ongoing digital transformation have created a favourable environment for corporates. This revenue growth is likely to create more jobs, particularly in mid-market firms as per the IBR, as 78% anticipate a surge in employment this year, surpassing the global average of 51%.”

There is also a notable shift towards integrating advanced technologies, particularly artificial intelligence (AI), with a staggering 72% of Indian mid-market leaders foreseeing a surge in technology investments to leverage AI’s potential. However, amidst this technological evolution, 44% acknowledge the potential increase in the cost of upskilling people due to AI, suggesting the need for strategic planning during this transition. Furthermore, 58% believe AI will drive innovation in products and services to differentiate themselves in the market and exceed customer expectations. This reflects a clear recognition of the role AI plays in driving growth.

Regarding investment in technology, Raja Lahiri, Partner and Tech Leader at Grant Thornton Bharat said, “Dynamic advancements and innovations can quickly disrupt traditional business models, leading to revenue decline and loss of market shares. To counteract these challenges, companies must maintain agility, consistently invest in technology especially Generative AI, cloud etc. and embrace digital and business transformation, with the highest standards of governance and trust.”

About IBR

The International Business Report (IBR) is the world’s leading survey of mid-market companies. The research takes place twice a year and involves interviews with chief executive officers, managing directors, chairpersons, or other senior executives from all industry sectors.