Indian service cos. most optimistic on robust business growth: KPMG survey

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Out of 1400 firms surveyed in BRIC nations (Brazil, Russia, India and China), across sectors like finance, telecoms, transport, rental and hospitality, about 435 Indian companies were included.

While 58.3 percent of Indian companies have forecast a rise in revenue (compared to 50.7 percent earlier), 57.8 percent expect profits to rise (as against 52.1 percent earlier and well above the BRIC average of 50.5 percent).

While approximately 56 percent of Indian respondents forecast an increase in new work, none expect a fall.

"The optimism reflects India's unique positioning, with its large domestic market, offshoring service capabilities and economic value drivers," said Russell Parera, CEO, KPMG India.

Fewer Indian respondents this year, however, expect business volumes to grow, the percentage falling to 60.3 from 62.5 a year earlier.

Interestingly, maximum growth in profit, salaries and employment were projected in financial services sector, followed by hospitality and tourism in India.

Bigger market, launch of new products and increase in marketing were cited as the top reasons for growth in the revenue while increase in competition and rising input costs were targeted as sources of concern in India.

According to Ian Gomes, chairman (new & emerging markets), KPMG, India will see growth in retail financial services like asset management, life insurance and credit cards.

"The turbulence in financial markets will not affect this space since subprime crisis impacts lending, (and) not the fee-based income," he said.

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