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CFO confidence in Indian economy at new high

A phenomenal 100% of Indian CFOs plan to increase their spending and investment activities this year.

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 as is clearly reflected in the seventh annual American Express/CFO Research Global Business and Spending Monitor.

A phenomenal 100% of the Indian CFOs plan to increase their spending and investment activities this year, said the survey.

Manoj Adlakha, Vice President and General Manager, Global Corporate Payments, American Express India, said, ?There is a strong positive sentiment amongst Indian CFOs towards the domestic economic and business environment. With more than 86% Indian CFOs expecting the Indian economy to expand over the next year, the confidence in the domestic economy is the highest that our report has shown in last three years.?

?A particularly positive sign is the CFO plans to aggressively increase their spending and investments across categories including IT, financial reporting, business travel, etc. Against this background, Indian CFOs will need to implement effective expense management solutions to improve control, build transparency and achieve savings,? he added.

While CFOs from China, Hong Kong and other Asian countries have significantly scaled back their expectations for their local economy, 86% of Indian CFOs have demonstrated a leap of faith in their local economy compared to last year. A large 77% of Indian CFOs expect their company?s sales to increase the most in the Indian subcontinent while another 67% expect growth from within Asian markets.

Indian CFOs lead 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.

Respondents have cited a wide range of needs for spending on information technology in 2014, with 70% respondents agreeing that information technology will contribute most to their growth strategy by improving efficiency and productivity, and reducing costs for the company.

Key points

* 93% of CFOs are likely to increase spending on business travel

* 100% Indian CFOs will increase spending and investment

* 86% Indian CFOs expect Indian economy to expand over the next year

* 79% Indian CFOs foresee expansion in the domestic economy as the key driver for business growth

* 77% Indian respondents expect their company?s sales to increase the most in the Indian subcontinent

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First published on: 13-06-2014 at 15:26 IST
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