India biz spending up on sales, marketing, but not on property

MUMBAI: Indian business is exuding confidence and this rising optimism is increasing business spend in India, a survey said.

Departmental spending is on the rise, specifically sales and marketing costs, the latest edition of the Regus Business Confidence Index said.

While companies are reporting rising revenues and profit, interestingly many are going slow on expenses related to premises and property, Regus said in a press release here.

"Departmental spending is predicted to rise this year, with the exception of property where companies are maintaining a strict cost control policy," it said.

Globally, 81 per cent companies expect to freeze or cut their property spending and in India, a large majority (70 per cent) expect to follow suit, it said.

This matches other research studies which reveal a general trend towards lower-cost working practices, it said.

Regus's Country Head, Madhusudan Thakur, said, "That business confidence is returning and it is great news as is the fact that so many companies are reporting rising revenues and profit. Planned departmental spending increase for 2011 are a further confirmation of returning confidence."