India Inc sees the next 12 months with cautious optimism for businesses, as Chief Financial Officers (CFOs) across industries express confidence in India’s growth potential. Although global challenges such as geopolitical tensions, oil price volatility, and supply chain disruptions continue to persist, top finance leaders remain upbeat about the country’s prospects.
Finance leaders view innovation, government initiatives, and strategic investments as key drivers of growth, especially in sectors like technology, renewable energy, logistics, and infrastructure. As businesses face these challenges, they are focusing on agility, adaptability, and prudent risk management to navigate the uncertain global landscape.
Despite the positive outlook, several risks continue to loom over the Indian economy. Geopolitical instability, especially in regions like the Middle East, rising oil prices, and the potential for disruptions in global supply chains are major concerns for business leaders.
Additionally, inflationary pressures and wage inflation may drive up costs in sectors like logistics, potentially necessitating price hikes, which could affect both consumers and businesses. Nevertheless, there is a consensus among CFOs that the way forward lies in remaining agile and investing in strategic resilience to weather these challenges.
What CFOs say
Pankaj Vasani, Group CFO at Cube Highways Infrastructure Investment Trust (InvIT), expressed cautious optimism for the year ahead. “The upcoming year holds promise, particularly in sectors driven by innovation, technology, and sustainable resources. These sectors offer new pathways for growth, but as we navigate a shifting global landscape, prudent risk management will remain essential,” Vasani said. He added that while there are significant growth opportunities, the need for strategic resilience will be key to overcoming the challenges posed by global volatility.
Aneel Gambhir, CFO of DTDC Express, highlighted the potential opportunities arising from evolving customer behavior, particularly during the festive season, which traditionally drives demand for logistics services. “The festive season brings significant opportunities for business growth, and we anticipate that consumer behavior trends will continue to fuel this demand,” Gambhir said. However, he also acknowledged the risks affecting the sector, including rising crude oil prices and wage inflation, which may lead to price hikes in the upcoming months. “While we remain confident in the growth potential of logistics, geopolitical tensions and climate volatility continue to be areas of concern,” he added.
Sanjeev Jha, CFO of Persolkelly India, expressed optimism about the government’s focus on transformative policies and structural reforms. However, he also pointed to the risks posed by global geopolitical instability. “Our aspirations are high, and there’s a lot of positivity around government initiatives. However, the ongoing conflicts in Ukraine and the Middle East, particularly the Israel-Iran tensions, will likely have both direct and indirect impacts on global economic growth,” Jha said. He emphasized that while global risks remain a concern, India’s resilience and adaptability position it to overcome such challenges.
Leaders in the consumer goods and home appliances sector are seeing strong growth driven by rising consumer spending.
Sathyanarayanan Viswanathan, CFO at BSH Home Appliances India, noted that despite a volatile landscape, India’s robust economic growth offers unique opportunities. “India remains the fastest-growing economy in the world, and we are witnessing a clear acceleration in the premiumization trend, particularly in home appliances. The upcoming festive season and increasing consumer demand for high-capacity, premium products will continue to fuel growth,” Viswanathan said. He also highlighted regulatory measures that have helped contain inflation, which is expected to stabilize the market in the coming months.
In the renewable energy sector, particularly solar energy, there is growing optimism driven by government initiatives and rising global demand for clean energy solutions. Abani Kant Jha, CFO of Saatvik Green Energy, said the solar energy sector is well-positioned for significant growth. “The renewable energy sector is poised for significant expansion, and the government’s focus on clean energy solutions offers us a fantastic opportunity to innovate and scale,” Jha said. He also stressed the importance of addressing risks such as supply chain disruptions and regulatory changes that could impact operations. “The key to navigating these challenges will be staying agile and adaptable,” he added.
Digital transformation
Venkatraman Narayanan, Managing Director & CFO at Happiest Minds Technologies, shared the view that India’s digital transformation will continue to drive growth. “While global headlines may focus on negative narratives, the reality is that the demand for technology solutions remains strong. India’s digital ecosystem is expanding, and businesses will continue to invest in technology to stay competitive,” Narayanan said. While acknowledging the potential impact of geopolitical tensions and political shifts on the business environment, Narayanan remained confident that growth and innovation would continue to drive investment and spending.
Vinay Thadani, CEO of Vishal Fabric Limited, pointed to India’s potential to lead in the green economy and stressed the importance of sustainable business practices. “India is poised to take bold steps in formalizing a green economy, both domestically and through global partnerships. The rise of new-age companies focused on sustainability will not only help mitigate environmental issues but also create significant economic opportunities,” Thadani said. He emphasized that these initiatives would focus on creating equitable job opportunities, reskilling the workforce, and ensuring that economic progress aligns with ecological responsibility.
Abhinav Jain, CFO of CoinDCX, noted that while the global financial cycle may be slowing, India is well-positioned due to its robust Gross Domestic Product (GDP) growth and ongoing structural reforms. “India is at a sweet spot right now. We expect the next jump in GDP growth to come from exports, innovation, and investments in public infrastructure. The easing of regulations to foster business will also play a significant role in sustaining growth,” Jain said.
Bet on infra development
Kishore Nuthalapati, CFO of BEKEM Infra Projects Pvt Ltd, highlighted the significant infrastructure development underway in India, particularly with the increasing focus on climate-friendly and sustainable projects. “India is number one in GDP growth and ahead of other nations in terms of digital infrastructure. The future will see a blend of digital and physical infrastructure, and this presents vast opportunities across sectors. However, we must continue to address the risks associated with adopting climate-friendly measures and improving technology literacy,” Nuthalapati said.
Despite the challenges that could hinder growth, CFOs remain confident that India’s economy will continue its upward momentum. The focus for India Inc. remains on seizing opportunities through strategic investments in innovation, government initiatives, and sustainability. As businesses prepare for the year ahead, staying resilient, adaptable, and committed to these core values will be key to overcoming any risks that may arise.
