Indian Economy News

Higher spending on travel and entertainment has been intended by 72% of Indian firms

According to a survey by American Express with the Center for Economics and Business Research (CEBR), investment in technology is intended to boost Business-to-Business (B2B) spending in India in 2023, followed by expenses on travel, entertainment, and related expenses. Around 72% of Indian businesses foresee a notable upswing in B2B spending, surpassing the global average of 49%.

Technology investments are driving the rise in B2B spending in India; 88% of businesses aim to increase their spending on it in 2023 compared to the first half of the year.

Driven by the need to increase productivity (69%), satisfy customer requests for digital products (63%), and improve payment speed and effectiveness (71%), 88% of organisations intend to allocate more funds to technological improvements.

A majority of businesses (79%) want to boost their spending on marketing and advertising. Specifically, the idea is to focus on promoting new products and services (58%), targeting overseas markets (58%), and investigating new marketing channels (69%).

72% of businesses expect increased spending in this category, with a primary aim of attending more industry events (68%) to network, gain insights, and explore partnerships. Businesses are also expanding domestic (63%) and international (60%) business travel to grow their reach and seize opportunities.

Anticipated spending also includes Information Technology (IT) and technology consultancy services (61%) to leverage technological advancements effectively and increased accountancy/financial advice (59%) for financial challenges and potential restructuring. The rise in IT and technology consultancy is the top sub-category driving this trend.

The survey conducted by American Express with the Center for Economics and Business Research (CEBR) also revealed that 92% of Indian businesses consider improving security around payments as a top priority. A significant part of Indian businesses (90%) also stated that managing cash flow and working capital has gained greater significance over the past years.

Around 84% of Indian businesses have partially automated payments to suppliers, and 39% have fully automated their payment processes. Companies using automated processes reported lower rates of human error (54%) and quicker, more accurate invoicing (58%).

86% of businesses want to start or increase automation for customer payments, and 83% want to improve the amount of automation that already exists for supplier payments. 34% of firms that are not yet fully automated look for partners to help them automate their payment procedures.

According to Mr. Manish Kapoor, Vice President and Head, Global Commercial Services (GCS) of American Express Banking Corporation, India, as the business landscape becomes increasingly competitive, the requirement to adopt smarter and more efficient payment solutions becomes paramount. For example, corporate cards, with their offering of extended payment terms, rewards on B2B expenditures, and seamless payment convenience, can make their spending more rewarding and efficient.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.