Indian companies trading abroad post better earnings in 2012: Regus study

Trading

Amid economic uncertainties, Indian companies, which traded internationally, have posted better earnings in 2012 compared to entities focused on the domestic market alone, according to a study.

The findings come amid signs of Indian economy, which was less impacted by the global financial meltdown of 2008, slowing down due to various domestic as well as global factors.

The study, conducted among 612 Indian companies by workplace solutions provider Regus, found that about 70 per cent of companies, which traded in the international market, posted better profit compared to about 48 per cent that are focusing on domestic markets.

In addition, the survey said that 74 per cent of respondent trading internationally reported a growth in revenues compared with just 56 per cent of firms concentrating domestically.

However, the survey said various concerns are stopping even more businesses from operating abroad.

Building an image abroad, complicated foreign tax systems, property costs and paperwork, political instability and natural disasters such as flooding or earthquakes are real worries preventing firms to step overseas, it added.

"...there are some big challenges facing companies who want to move abroad. Once that initial enthusiasm has worn off, companies find they are bogged down with paperwork or red tape or have real difficulty establishing a physical presence in a foreign country," Regus Regional Vice-President (South Asia) Madhusudan Thakur said.

The survey, said Indian firms consider South East Asia as the best market for the expansion purpose, with 41 per cent of businesses rating it as most profitable market followed by China (39 per cent), the Middle East (27 per cent) and Europe (23 per cent).

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