- Treasury and Finance Teams: 68% of Indian executives view these teams as vital to globalisation.
- ESG Reporting: 65% of Indian businesses are engaged in ESG reporting, leading regional peers.
- Talent Pool Importance: 84% of Indian businesses cite a diverse talent pool as critical for treasury and finance functions.
Indian businesses are taking the lead in ESG reporting and prioritizing diversification efforts, outpacing their global counterparts, according to a recent study by DBS Bank. The comprehensive research, titled “Pivotal: How treasury and finance enable a new era of globalisation,” was conducted in partnership with the Financial Times Longitude and surveyed over 570 senior executives from 15 countries, including India.
Among the key findings, 68% of Indian executives believe that treasury and finance teams will be integral to a new era of globalisation. This is significantly higher compared to their global peers, showcasing the strategic importance placed on these functions in India. Additionally, 72% of Indian businesses plan to prioritize diversification over the next two years, a critical strategy for growth and innovation.
The study identifies three main strategic priorities for Indian businesses:
- Securing New Skills and Talent: A striking 78% of Indian businesses are focused on attracting and securing new skills and talent to drive their operations forward.
- Improving Productivity: 76% of businesses are dedicated to enhancing productivity and operational performance, ensuring they stay competitive in the global market.
- Business Diversification: 72% are committed to diversifying through innovation, securing financing, and exploring new market channels.
In terms of ESG reporting and compliance, Indian companies are ahead of their regional peers. The study reveals that 65% of Indian businesses are engaged in ESG reporting, compared to 62% in Singapore, 53% in Hong Kong, and 41% in China. This commitment aligns with the stringent mandatory reporting and disclosure norms in India, reflecting a proactive approach towards sustainability.
Another key insight from the study is the emphasis on a diverse talent pool. An overwhelming 84% of Indian businesses consider the presence of a diverse talent pool a critical factor when deciding where to locate their treasury and finance functions. This is notably higher than the global average of 70%. Moreover, 72% of Indian businesses highlight the importance of a stable political environment and robust financial ecosystem, both of which are reliably available in India.
Speaking on the launch of this survey, Rajat Verma, Managing Director and Head of Institutional Banking, DBS Bank India, stated, “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.”
The study also sheds light on the challenges faced by Indian businesses. A significant finding is that 42% of Indian executives perceive the emergence of new market entrants as a key barrier to business growth, compared to a global average of 27%. 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% closely involved in procurement and supply chain management, which are 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 organizations. 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.”
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In conclusion, the findings of the DBS Bank study, in partnership with the Financial Times Longitude, underscore the evolving role of treasury and finance teams. Companies that embrace these changes and enable their teams to adapt to new responsibilities stand to benefit from a more informed approach to unlocking new opportunities in a dynamic global marketplace.
Over 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.