Indian businesses and investors reposition Amid shifting global environment

• 98% of Indian businesses plan to increase cross-border trade or investment over the next five years, the highest of any market surveyed
• 86% of Indian businesses expect their cross-border capital deployment to increase over the next three years
• 94% of Indian businesses are actively increasing capital deployment in high-growth markets despite volatility
• India leads all markets on AI and data infrastructure as a driver of international strategy, cited by 71%

Senior leaders and institutional investors in India (86%) are repositioning for the long-term amidst uncertainty. This is according to a new independent survey from HSBC ahead of its annual HSBC Global Investment Summit .

The survey of 3,000 international businesses and institutional investors in 10 markets (including 300 in India), shows that, after a decade of cumulative global shocks, companies are adapting and still investing. The survey was conducted in mid-March against the backdrop of recent world events.

A new relationship with risk

The survey shows that 95% of Indian respondents accept that economic volatility has become a feature of the global landscape. More than 9 in 10 (91%) Indian respondents say they have recalibrated their capital allocation approach in response to increased volatility, and 94% say they are actively increasing deployment in high-growth markets - among the highest proportions of any market. Calculated risk appetite has risen: 94% of India respondents say they are more willing to take calculated risks than five years ago, against a global average of 87%.

Trade and investment: the most expansionary outlook of any market

India respondents display the most expansionary cross-border outlook in the survey. 98% plan to increase cross-border trade and investment over the next five years - the highest of any market globally and above the already high global figure of 93%. About 93% respondents expect those flows to become more regional in pattern. In addition, 86% of institutional investors and businesses in India, expect their cross-border capital deployment to increase over the next three years, against a global average of 73%.

Beyond seeking domestic growth opportunities, the survey points out that Indian companies are looking to diversify across markets, build new partnerships, and scale internationally. Indian respondents, including businesses and institutional investors, identified the UAE (58%) and Saudi Arabia (45%) as markets of growing importance to their economic relationships. The UK is cited by 56%, reflecting longstanding trade and diaspora ties with North America close behind at 43%.

Ajay Sharma, Head of Banking, HSBC India, said: “The findings from the survey reflect something more than a response to volatility; they signal a fundamental recalibration in where growth will be created and how it will be captured. With strong domestic growth momentum, expanding international ambition, and deepening connections with new and existing corridors, India is emerging as one of the most dynamic forces in global trade and investment. HSBC is committed to helping our clients in India move with confidence through amidst uncertainty”.

AI and digital finance: future growth drivers

Technology is central to India’s international strategy. India leads all markets surveyed on strong AI and data-related infrastructure as a driver of market exposure decisions, cited by 71%, which is 20% above the global average. Access to critical technologies and infrastructure is cited by 91% of Indian respondents as a strong influence on international strategy over the next three years.

AI’s expected benefits are led by improved productivity and workforce efficiency (65%), with better forecasting and decision-making (58%), an increase in innovation (56%), and enhanced customer experience (53%) all featuring strongly, a broad-based set of expectations that reflects the scale of AI ambition across the Indian business community.

Conviction that digital and tokenised financial infrastructure will reshape capital markets is nearuniversal: 98% of Indian respondents believe digital assets will fundamentally reshape capital markets over the next decade, the highest of any market in the survey. 49% believe that by 2035 global capital markets will primarily operate on digital rather than traditional infrastructure, above the global average of 46%. On readiness, India is ahead:39% acknowledge they do not yet understand digital finance well enough to assess its impact, compared with 47% across Asia as a whole, and 56% are already actively implementing digital finance use cases.