Tough year ahead for Indian firms: E&Y
Mumbai: Despite a fair recovery in the global economy, businesses worldwide, including in India, will have to go through a tough phase as the environment gets more challenging, according to a report by Ernst & Young.
The study titled 'Competing for Growth', that involved 1,400 senior executives globally, states that the next two years would be a challenging period for the business firms.
About 95 per cent of the Indian respondents state that there will be more focussed on growth besides being varied and volatile in the next two years as compared to the crisis period, according to the study.
India is said to remain the third most volatile market at 69 per cent after Japan (74 per cent) as margins will be under pressure due to price erosion and increasing labour costs.
Brazil is said to be the most volatile market.
Emerging markets expect competitiveness to increase the most, as companies from developed markets enter and local players intensify their focus, the study added.
About 50 per cent of the Indian respondents cite existing players from emerging markets and 38 per cent cite new players from developed markets as most prominent factors driving increased market competitiveness over the past two years.
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