HSBC’s global survey ‘Navigator: Now, next and how for business’, covering 6000 companies
in 26 markets, has found that firms in India are most concerned about rising protectionism
across the world.
The survey data shows that almost nine in 10 businesses in India feel that governments are
turning increasingly protectionist, leading to a rise in the cost of doing international business,
altering trade routes and raising hurdles to obtaining trade finance.
This is significantly higher than the global average where, of the 6,000 firms surveyed, three in
five (61%) think governments are becoming more protective of their domestic economies.
Other regions where the sentiment is strongest among companies are MENA (70%) and AsiaPacific (68%). In the USA, 61% believe protectionism is on the rise, while in Europe, half (50%) are seeing a rise in protectionist tendencies.
Rajat Verma, Head of Commercial Banking, HSBC India said, “An increase in protectionist sentiment is causing concern about the cost of doing cross-border trade and international business. Companies are adapting business plans and relationships to participate in shifting supply chains. Strategies include increasing regional trade, establishing joint ventures or local subsidiaries in more markets and capitalising on trends in consumer demands and digital technologies.”