Innovation Tops Priority List for Indian Firms Amid Uncertainty

In a climate marked by economic and geopolitical uncertainties, Indian businesses are heavily prioritizing innovation, with 95% placing it among their top three strategic focuses. This revelation comes from a recent report by the Boston Consulting Group (BCG) titled 'Most Innovative Companies 2025: In Disruptive Times, the Resilient Win'. Drawing from two decades of innovation research, BCG underscores the critical role innovation plays in sustaining corporate success.

The report, based on an analysis of companies featured in BCG's 50 Most Innovative Companies lists since 2005, uncovers a significant correlation between sustained innovation excellence and enhanced total shareholder returns (TSR). Notably, top innovators have consistently outperformed the wider market by an annual average of 2.4 percentage points, particularly thriving during the Great Recession and the COVID-19 pandemic.

BCG Managing Director Justin Manly emphasizes that navigating adversity through innovation distinguishes leading companies from the competition. He notes that mere R&D expenditure isn't sufficient; instead, strategic investment in targeted initiatives is essential in turning uncertainties into opportunities. As digital maturity becomes a baseline for innovation success, findings show a doubling of digital innovation mentions in corporate earnings calls from 2005 to 2024.

In light of growing geopolitical uncertainties, the report advises business leaders to consider four key areas—ambition, portfolio, talent, and business footprint—to prepare for a potentially post-globalization phase. BCG Partner Amy MacDougall asserts that the current environment calls for bold and decisive action to solidify innovation frameworks for the future, equating it to not just weathering the storms but also redesigning the ship during turbulent times.

(With inputs from agencies.)