80% Of Indian Mid-Market Companies Are Positive On Economic Outlook: Study

These positive sentiments persist despite global economic indicators suggesting a downturn, according to the report

The report further reveals a significant trend towards incorporating advanced technologies

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80 per cent of Indian mid-market enterprises remain optimistic about the economic outlook for the next 12 months, fueled by initiatives like 'Make in India,' improvements in ease of doing business, and continuous digital transformation efforts. This figure represents an increase from 78 per cent in the first half of 2023. These positive sentiments persist despite global economic indicators suggesting a downturn, according to an International Business Report (IBR) released on Thursday by Grant Thornton. The report is based on a global survey conducted across mid-market companies.

The report further reveals a significant trend towards incorporating advanced technologies, notably artificial intelligence (AI), with an impressive 72 per cent of Indian mid-market leaders anticipating a rise in technology investments to harness the potential of AI.

Talking about the report’s findings, Siddhartha Nigam, Partner, Grant Thornton Bharat, said, “The bullish outlook extends beyond just profit expectations. About 83 per cent of Indian mid-market firms expect growth in revenue in the coming year, as India's expansive domestic market offers lucrative expansion opportunities.”

“This revenue growth is likely to create more jobs, particularly in mid-market firms as per the IBR, as 78 per cent anticipate a surge in employment this year, surpassing the global average of 51 per cent,” he added.

Nevertheless, amidst this technological evolution, 44 per cent recognise the potential rise in the cost of upskilling employees due to AI, underscoring the necessity for strategic planning throughout this transition. Additionally, 58 per cent believe that AI will spur innovation in products and services, enabling them to distinguish themselves in the market and surpass customer expectations, states the report.

This demonstrates a clear acknowledgement of AI's pivotal role in fostering growth.

“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,” emphasised Raja Lahiri, Partner and Tech Leader at Grant Thornton Bharat.