Team Finland India Revealed Positive Business Confidence Among Finnish Companies in India in 2024
Team Finland India has successfully completed its 2024 Business Confidence Survey, gathering valuable insights from Finnish companies on their operations in India. The results reflect an upbeat stance towards the Indian market, suggesting Finnish companies are poised to thrive in one of the world's most vibrant economic arenas.
60% of survey responding companies fall under the category of large and mid-cap organizations, showcasing a substantial Finnish corporate presence in India. These companies are geographically well-dispersed, with a notably strong presence in the southern regions—as evidenced by the variety of locations they occupy such as Karnataka, Delhi, Haryana, and Maharashtra. The industries that saw a prominent participation in the survey include IT services, along with energy and utilities sectors, followed by chemicals, manufacturing, software, apps and gaming illustrating a diverse Finnish business ecosystem within India.
Reflecting on the tenure of business operations, the survey illustrates that more than half of the Finnish companies have been entrenched in the Indian market for over a decade. This indicates a deep-rooted commitment to the country’s economic landscape and suggests established relationships and business continuity. In terms of revenue expectations in 2024, the survey exudes promising sentiments, with an overwhelming 87% of companies projecting either a slight or significant spike in their earnings as opposed to the prior year. This optimism represents confidence in their strategical and operational prowess to leverage market opportunities.
When considering profitability, the data indicates that 38% of the companies are looking forward to a slight uptick in net profits in 2024, while 15% are even more sanguine, expecting a marked increase in their bottom line. This forward-looking outlook signifies a conducive environment for Finnish enterprises to bolster their financial performance in India. Investment prospects seem equally encouraging, with a substantial 80% of the respondents indicating a favorable investment climate. Delving deeper, 13% of the businesses are considering a substantial ramp-up in their investments, 40% aim for a moderate hike, and about a quarter of the surveyed companies intend to continue investing at the 2023 levels. A particular insight into the investment domains reveals that Finnish companies are strategically prioritizing human resource development (32%) and marketing and promotion efforts (14%). These areas are seen as critical building blocks for business expansion and reinforcing market presence in the forthcoming year.
Employment trends are also aligning with business growth strategies, with an emphasis on moderately increasing the recruitment of local Indian talent. Conversely, the number of foreign employees is expected to remain stable, pointing to an adaptation of workforce strategies aligned with market conditions. The landscape of competition in India is seen as equally divided, with 33% of Finnish companies perceiving a balanced rivalry from both Indian SMEs and foreign large private enterprises. This parity suggests a highly competitive environment where Finnish businesses have to strategically navigate their unique value propositions.
Commendations for Team Finland have been strong, with a 63% excellence rating affirming their role in bolstering Finnish businesses in India. Their support is recognized as instrumental for these companies in seizing growth opportunities in the Indian market.
In closing, the business climate for Finnish companies in India projects a spirited and lucrative future, underscored by an anticipated surge in revenue, profitability, and a commitment to escalating investments. Finnish businesses appear determined to deepen their engagement in India, buoyed by the solid foundation facilitated by Team Finland India. For Finnish companies, India stands as a land of growth and opportunity, with the promise of a thriving partnership that will benefit both Finland and India for years to come.
Business Finland is a Finnish public entity that provides innovation financing and internationalization services while promoting tourism and investments and talents in Finland. The organization employs approximately 760 experts in 40 offices worldwide and 16 locations in Finland. Business Finland is part of the Team Finland network together with the Finnish ministries, Network of Finnish missions abroad, Finnish Cultural and Academic Institutes, Finnvera, Finnfund, and Regional internationalization services offered by Centres for Economic Development, Transport and the Environment.
Contact:
Gitta Perez
Director, Middle East & India (Region Head)
Business Finland
Juha Heikkinen
Junior Advisor
Business Finland, New Delhi, India