India’s economic influence in Asia Pacific to increase in next five years: survey
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Mumbai: India’s influence in the Asia-Pacific region will increase in the next five years as its economy expands and the government pursues pro-business policies, according to a survey released on Monday.
Ninety-five percent of respondents in the survey by global law firm Baker McKenzie predicted that Indian economic influence in the region would grow in the coming five years, compared with 77% who saw China’s influence is continuing to expand. The US’ influence is on the decline with 16% seeing an increase in US’ sway over the region over the next five years, compared with 48% predicting a decline.
“Growth rates aside, India’s influence will also stem from its attractiveness as an investment destination and a jurisdiction where domestic businesses can grow and expand beyond their borders. The steps taken by Prime Minister Narendra Modi’s pro-business government, among many other factors, have contributed to respondent sentiment that the Indian government is the most active in the region in terms of improving the ease of doing business in the country,” according to the survey.
The survey got responses from 150 business leaders based in the Asia Pacific who identified the key complexities facing companies across the region.
Technology, through either disruption or the need for innovation, was picked as the biggest complexity, followed by cost pressures/shrinking margins, and technological disruption from competitors, the survey said
Eighty-four percent of respondents predicted that the disruptors would likely challenge their businesses within just two years. A total of 94% of respondents see an increase in mergers and acquisitions (M&A) activity across the region, while litigation was also seen as being on the increase by two thirds of businesses.
Identifying where companies and industries see complexities emerging can help both governments and businesses themselves better prepare for this rapidly changing environment, said Gary Seib, chair, Asia Pacific, Baker McKenzie.
“That technology is at the top of the list is probably not a surprise to many, but the number of companies that expect disruption by competitive technology in just the next two years should give pause to any corporates who see themselves as immune to these forces,” Seib said.
Ashok Lalwani, head of the India practice at Baker McKenzie, said that amid global uncertainty, the Asia-Pacific will play an increasingly significant role to fuel both international trade and investments.
“This, combined with the government of India’s progressive outlook, is accelerating India’s favourable position to do business in and with, as well as strengthening the country’s influence in the region, overall.”