Stable cash flow is more crucial for Indian businesses than access to technology: HSBC
Maintaining sufficient cash flow is seen as more crucial to building business resilience than access to cutting-edge technology, a survey by major global bank HSBC said on Tuesday.
The British lender surveyed 200 Indian businesses of all revenue sizes, from small to large, between April 28 and May 12 this year as part of the 14-country survey.
The findings come at a time when the Covid-19 pandemic has impacted economic activities, and due to the stress it has caused, the Reserve Bank of India (RBI) has also announced a one-time loan restructuring for contain non-performing system assets.
The survey, conducted through market research and consultancy firm Kantar, said maintaining sufficient cash flow was voted by 41% of Indian businesses surveyed as a key to bolstering the resilience, compared to 38% who expressed concern about access to new technologies. , according to the results of the survey.
India ranks second behind Malaysia (at 42%), where maintaining cash flow was seen by companies as a major obstacle to building resilience, he said.
“In light of the current environment, maintaining sufficient cash flow and access to advanced technologies have been identified as key barriers to building resilience over the next six months by Indian businesses. interviewed,” according to the findings.
Indian companies are realizing that building resilience is not a one-size-fits-all, it is about more than a strong balance sheet, he added.
According to the Indian companies interviewed, valuing customers, maintaining a strong balance sheet and supporting a culture of innovation were the main attributes for building resilience.
The head of the lender’s commercial bank, Rajat Verma, said the current environment has brought “challenges like never before” and added that the survey highlights the impact of technology on the business.
More than two-fifths (41%) of Indian companies surveyed gave top priority to investing in technology and innovation, he said, adding that this was the highest among all markets where the survey was conducted.
Over the past two years, about 77% of Indian companies surveyed have invested in technology and innovation, which is higher than the global average of 65% in all markets, but lower than China’s 79%, according to investigation.