Thrust on the four industry Rs will hold key to business growth
Investing in growth is essential, but it's equally important to spend it pragmatically
Key growth areas for India in 2024 include digitalization, sustainable production and infrastructure, trade facilitation, expanding manufacturing capacity, semiconductors and technology R&D, and growth in the financial sector
In 2024, driving business growth demands more than just a well-crafted plan; it requires strategic adaptability and a keen focus on efficiency. As the year unfolds, businesses will need to remain agile, continuously evaluating and adjusting their strategies to navigate a challenging and ever-changing environment.
In today's dynamic business landscape, however, adaptability is the key to success. Once your strategic plan is in place, continuously review and be willing to change course as the environment evolves. Always have contingency plans and diversify your efforts to spread risk; don't put all your eggs in one basket.
As we’ve seen in recent years, market conditions can change rapidly and unforeseen challenges may arise. Business agility is important and by staying flexible and responsive, you can pivot quickly when necessary and seize new opportunities. Regularly assess the performance of your business strategies and adjust as needed to stay on track towards your growth goals.
Investing in growth is essential, but it's equally important to ensure that your investments are well-spent. Set robust measures for high-spending channels and activities to prevent budget wastage.
Evaluate the ROI (Return on Investment) of your marketing campaigns and sales initiatives regularly. Use data and analytics to identify the strategies and channels that are delivering the best results and allocate resources accordingly. This approach will help you optimise your budget allocation and maximise your growth potential.
Your employees are your most important asset. In the face of the cost-of-living crisis, it's essential to invest in your staff's wellbeing. Not only is this the right thing to do, but happy and motivated employees are also more productive and likely to stay with your company for long.
According to estimates of International Monetary Fund (IMF), India will emerge as the world’s third-largest economy by 2027, hopping over Japan and Germany, as its GDP crosses the $5 trillion mark and India aspires to be a developed economy by 2047.
According to Deloitte estimates, India will need at least 6.5% growth to reach its first milestone in 2027 and about 8-9% growth to reach the second in 2047.
India’s micro, small, and medium enterprises (MSMEs) will be the key to generating the income, capabilities, capacities, and ecosystems needed for sustained growth in consumption and investment that is broad-based and comes from all sections of the economy. The MSME sector will also drive innovation and new opportunities in a cost-effective manner, as a source of job creation and entrepreneurship, especially for women in rural areas. In short, the sector will help India reap the potential benefits of its favourable demographic trends and the expansion of middle-income class.
The rise of the sunrise sectors, such as green energy, e-mobility, semiconductors, food processing, defense, and space, is also opening up new opportunities for MSMEs.
Key growth areas for India in 2024 include digitalization, sustainable production and infrastructure, trade facilitation, expanding manufacturing capacity, semiconductors and technology R&D, and growth in the financial sector.
India’s focus on emerging industries like healthcare, fintech, renewable energy, electric vehicles, IT and semiconductor manufacturing aligns with global trends. Commitment to decarbonization and achieving 500 GW renewables capacity by 2030 reflects a forward-looking approach.
We do see FY2025 as the year of ‘capability building’ as the new normal. Navigating the current challenges will require the industry to focus on the 4Rs - Reshape - Accelerate transition to AI first companies; Reskill - Make talent the biggest competitive advantage; Rewire growth and Raise IP creation and R&D investments, says Debjani Ghosh, President of Nasscom.
Based on the cautionary demand environment, companies have been focusing on enhancing utilization and shifting to a more just-in-time hiring model. The industry added 60,000 net employees in FY2024E. However, the focus on digital skills continued to remain strong with AI, cloud, data and cybersecurity emerging as top in-demand skills for the industry in 2023.
Although global macroeconomic headwinds continue to remain constant, CEOs expect technology spending to increase in 2024. Industries such as Hi-Tech, BFSI and TMT that underperformed in 2023 will likely improve in 2024. According to Nasscom Annual Enterprise & Tech Services CEO Survey, 2024, over two-third of respondents expect better revenue growth in FY 2025, driven by factors such as strong deal pipelines leading to project implementation, expansion in GCCs, AI accelerating from PoC to Production and increasing discretionary spending.
CEOs also anticipate the hiring environment to normalize with the expected increase in both fresher and lateral hiring.
