July 29, 2024, Mumbai, Maharashtra, India : A comprehensive, global study entitled ‘Pivotal: How treasury and finance enable a new era of globalisation’ conducted by DBS Bank in partnership with the Financial Times Longitude reveals the strategic priorities as well as the potential challenges for businesses in a new era of globalisation. Surveying over 570 senior executives from 15 countries1, including India, it offers valuable insights into how financial strategies and diversification efforts are driving growth and innovation.
The research study identifies the top three priorities for Indian businesses over the next two years:
78% will give precedence to securing new skills and talent,
76% will focus on improving productivity and operational performance,
72% are committed to business diversification through innovation, financing, and exploring new market channels.
When examining insights from the subcontinent, it was seen that Indian businesses are more likely than their regional peers to be engaged in ESG reporting and compliance (65% in India, compared with 62% in Singapore, 53% in Hong Kong and 41% in China). This aligns with the increase in stringency and rigour required from mandatory reporting and disclosure norms in the country. 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% of organisations citing it as a critical factor, compared to a global average of 70%. 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% of businesses in India.
Speaking on the launch of this survey, 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.”
A significant finding is that 42% of Indian executives (compared to the global average of 27%) 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.
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.”
The findings of the DBS Bank study, in partnership with the Financial Times Longitude, point to the fact that companies that embrace the more involved role of their treasury and finance leaders and enable them to adapt to new responsibilities, stand to benefit from a more informed approach to unlocking new opportunities in a dynamic global marketplace.
1Over 85% of respondents were from companies with an annual revenue of over USD 1 billion. The study was conducted by FT Longitude, the specialist thought leadership division of the Financial Times Group.