Home Advantage: 87% of Indian Firms Score Big by Pivoting to Domestic Markets Amid Global Trade Storm

A sweeping 87% of Indian companies are shifting their focus to the domestic market, recalibrating strategies amid mounting global trade uncertainties, according to HSBC’s latest Global Trade Pulse Survey released on May 29, 2025. The survey, which covered 250 Indian firms with international operations, underscores a decisive pivot as businesses brace for rising costs, policy shifts, and tariff wars.

 

Key Highlights:

 

Domestic Focus Intensifies: 87% of Indian firms are prioritizing local customers and reducing international exposure to ensure business stability.

 

Strategic Reassessment: 76% are rethinking long-term strategies in response to evolving trade policies, while 80% are exercising greater caution in expansion and investment decisions.

 

Market Diversification: 91% are exploring new, less risky international markets, and 82% are exiting high-risk regions impacted by trade disruptions.

 

Mergers & Acquisitions: 87% are actively considering M&A to strengthen supply chains and market positions, aiming to mitigate volatility and seize new opportunities.

 

Cost Pressures Mount: 83% anticipate a substantial rise in costs over the next six months—well above the 73% global average—with 51% citing tariffs as a major concern. To cope, 42% have already raised prices, and 48% plan to follow.

 

Optimism Amid Disruption: Despite these headwinds, 96% of Indian firms remain confident about international growth prospects, with increased interest in the USA, South Asia, and the Middle East.

 

Resilience Tools Needed: 56% seek support for crisis planning and resilience, while 53% want better tools to manage trade risks.

 

This dual approach—fortifying domestic operations while selectively expanding abroad—signals a new era of agility for Indian enterprises, as they navigate a turbulent global trade environment with optimism and strategic foresight.

 

Source: Economic Times, Business Standard, Fortune India, The Telegraph India