72% of Indian Businesses Will Prioritise Diversification In Next Two Years: Report It also suggests that 42 per cent of Indian executives (compared to the global average of 27 per cent) perceive the emergence of new market entrants as a key barrier, hampering business growth.

Indian businesses are more likely than their regional peers to be engaged in ESG reporting and compliance, DBS Bank said in its report.

The report, 'Pivotal: How treasury and finance enable a new era of globalisation' was conducted by DBS Bank in partnership with the Financial Times Longitude, revealed, "Indian businesses are more likely than their regional peers to be engaged in ESG reporting and compliance (65 per cent in India, compared with 62 per cent in Singapore, 53 per cent in Hong Kong and 41 per cent in China)."

According to the report, there are top three priorities for Indian businesses over the next two years, including 78 per cent will give precedence to securing new skills and talent, 76 per cent will focus on improving productivity and operational performance, and 72 per cent are committed to business diversification through innovation, financing, and exploring new market channels.

It also suggests that 42 per cent of Indian executives (compared to the global average of 27 per cent) perceive the emergence of new market entrants as a key barrier, hampering business growth. Access to capital (40%), and growing regionalisation and nationalism, (36%), are also fundamental concerns.

"Despite these challenges, Indian enterprises are actively pursuing global expansion, with treasury and finance departments playing an increasingly central role. These functions are driving decisions, with 92% of treasury and finance teams engaged in corporate strategy and 88% of these teams in Indian businesses closely involved in procurement and supply chain management, vital functions in the current trade landscape," it stated.

Rajat Verma, Managing Director and Head of Institutional Banking, DBS Bank India said, "Amidst global headwinds, there are emerging opportunities for companies to benefit from the shift towards Asia by harnessing the power of innovation and data-driven decision making. The new DBS study reveals how the role of Treasury has been evolving strategically within this paradigm to drive business results, unlock value and manage risk. As a trusted partner, DBS Bank is committed to leveraging our established regional network and expertise in digitalisation to help companies navigate this path forward."

Another interesting aspect that emerged was that one of the biggest considerations for Indian companies deciding where to locate their treasury and finance functions was the presence of a diverse talent pool, with 84 per cent of organisations citing it as a critical factor, compared to a global average of 70 per cent.

"A stable political environment and robust financial ecosystem, aspects that are very reliable in India, also rank high on this list of location influencers, each factor cited by 72 per cent of businesses in India," the report stated.

Divyesh Dalal, Managing Director & Head – Global Transaction Services, SME & Institutional Liability Business, DBS Bank India shared, "The Pivotal 2024 survey indicates that businesses in India are leading their regional peers in ESG reporting and compliance, which corresponds closely to trends we have seen with DBS clients in the country. Treasury and finance teams are going beyond their traditional remit in driving value for the organisations. They are increasingly looking to better leverage emerging technologies like AI & Gen AI to build their core businesses. As companies become more global, the competitive advantage derived from integrating sustainability and digitalisation into operations will be the deciding factor for long-term business success."