Indian Business Leaders Expect Major Profit and Revenue Growth in 2024, Second Annual J.P. Morgan Survey Finds

Indian companies are hopeful about the year ahead as hiring plans, credit needs and AI integration influence overall business outlook

According to J.P. Morgan’s second annual India Business Leaders Outlook 93% of business leaders of midsized companies in India expect their profits to rise in the year ahead, up 9% from 2023, with planned revenue increases closely following at 92%. In a further testament to the positive climate, a majority of Indian business leaders surveyed expressed optimism in both the national (76%) and global economy (69%) in the year ahead,

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Recession expectations for Indian midsize business leaders in the year ahead (Graphic: Business Wire)

“Local business leaders have confidence in the economy despite ongoing global economic and geopolitical challenges, as well as the potential of a global recession,” said Pranav Chawda, Head of Commercial Banking India, J.P. Morgan. “Entering an election year, the optimism displayed by Indian industry leaders demonstrates strong certainty that the country will continue to be among the leaders in global economic growth in the coming years.”

Indian midsize businesses are galvanizing new ways to grow, while staying grounded because of potential economic impacts. In a survey of nearly 300 C-suite executives, 51% reported anticipating a recession in 2024, down 10% from 2023. Additionally, two-thirds plan to introduce new products (65%) over the next 12 months, with more planning on expanding into new international markets (65%, up 7% from 2023) and strategic partnerships and/or investments (65%, up 16% from 2023). Contrasting the overarching optimistic outlook, 83% of Indian business leaders cite costs are rising due to inflation, up 5% from 2023—and their top concern in the year ahead is rooted in navigating global unrest and geopolitical concerns (35%).

“Since we started serving Indian-headquartered midsize companies through our Commercial Banking division in 2019, the country continues to prove it’s resilience, which is reflected in this year’s survey results,” said Kaustubh Kulkarni, Senior Country Officer, J.P. Morgan India and Vice Chair, Asia Pacific. “It’s great to see local business leaders focused on their continued progress and innovation, and we are excited to be able to support them with our full suite of offerings—ranging from onshore banking products to cross-border banking, including investment banking.”

Creatively Embracing Credit and People to Support Growth

In order to support their growth, 80% of Indian business leaders anticipate increasing their capital expenditure, and nearly the same amount foresee an increase in their credit needs (78%).

As a result, 76% of Indian business leaders reported currently using bank lines of credit, with the following leading alternatives also being leveraged:

• Asset-based Financing (63%)
• Venture Capital (57%)
• Private Placement Debt or Equity (56%)

To further their growth plans, hiring is poised to accelerate in 2024, with 65% of business leaders looking to increase their headcount in the next 12 months, up 9% from 2023—and 28% planning to maintain their current staffing.

Integration of Artificial Intelligence Continues to Soar

While 27% of those surveyed cited the adoption of artificial intelligence (AI) as a notable challenge facing their business in the year ahead—almost all (93%) reported they are already using or are considering using AI tools, such as generative AI and language processing software, in the year ahead.

Of those currently using AI tools, more than half are using AI tools for:

• Business Operations (63%)
• Human Resources/Training (59%)
• Financial Management/Accounting (59%)

For more information on the 2024 India Business Leaders Outlook survey, visit jpmorgan.com/business-leaders-outlook-IND.

Survey Methodology

J.P. Morgan’s India Business Leaders Outlook survey was conducted online from November 16 – December 13, 2023. In total, 285 business leaders (CEOs, CFOs, heads of finance and owners) from Indian midsize companies (annual revenues ranging from 150 Cr – 16,000 Cr+) across various industries participated in the survey. Results are within statistical parameters for validity, and the error rate is +/- 5.5% with a 95% confidence level.

About JPMorgan Chase

JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had $3.9 trillion in assets and $328 billion in stockholders’ equity as of December 31, 2023. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

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