Top 5 priorities for Indian CFOs in next 5 years

Indian CFOs and treasurers are prioritising digital transformation and financial agility to align with the country’s expanding role in the global economy, as per a report. 

DBS Bank Report titled ‘New Realities, New Possibilities’ in July 2025, reveals that businesses are recalibrating their long-term strategies to strengthen financial resilience over the next five years. 

The report surveyed around 800 finance leaders, including CFOs and corporate treasurers, across 7 sectors and 14 markets.

According to the DBS report, the Indian market’s booming technology sector brings new sustainability imperatives: rising energy consumption and mounting e-waste are pressing concerns that companies must address to attract ESG-focused investors and safeguard long-term resilience. 

With consumer spending projected to nearly double by 2030, businesses are doubling down on capital cost optimisation to preserve margins and tap into the growing demand from India’s expanding middle class.

Here are the 5 five priorities for Indian CFOs over the next 5 years.  

1: Transforming treasury operations, as around 68% of Indian CFOs view this as a critical priority compared to 60% globally. Therefore, the report also noted that 79% of Indian CFOs believe GenAI will modernise treasury operations and significantly improve decision-making, forecasting accuracy, threat anticipation, cash flow forecasting, liquidity management and strengthen risk management.

2: Liquidity and forex management come second in the priority list as volatility in foreign exchange and interest rates globally has made Indian CFOs actively hedge risks and diversify funding sources. 

3: Capital cost optimisation: Indian CFOs are leveraging domestic credit, synthetic derivatives, and green financing tools like ESG-linked loans to lower capital costs. It is important as India strengthens its position in global supply chains. Also, with fluctuating interest rates and changing regulatory norms, capital structure optimisation is a top priority.

While 63% of Indian businesses are prioritising enabling green initiatives and complying with green standards as a high priority. Another 63% of Indian businesses view capital cost optimisation as critical as well.

“A discernible shift is underway for treasury leaders who are stepping up to support business diversification and linked capital allocation, while building ESG aligned supply chains,” said Divyesh Dalal, Head, Global Transaction Services, SME & Financial Institutional Group, DBS Bank India.

4: Enabling ESG and sustainability compliance: Almost 80% of Indian finance leaders are leveraging instruments like green bonds or ESG-linked loans. These are especially leveraged in consumer and tech sectors, driven by rising energy needs and investor scrutiny.

“The country’s ESG debt market is rapidly expanding, with cumulative Green, Social, and Sustainability (GSS) bond issuance reaching USD 56 billion by end of 2024. Enhanced regulatory standards and improved disclosures are boosting investor confidence and creating a more credible and transparent landscape for sustainable finance,” the report noted.

5: Data-driven financial intelligence: Indian CFOs ranked data visualisation, real-time monitoring, and predictive analytics as key tools to drive proactive capital strategies and working capital efficiency. 

Impact of Geoeconomics

Global currents are rewriting finance leaders’ priorities to focus on data-driven financial intelligence, liquidity and FX management over the next five years. However, India remains confident in its long-term growth trajectory as 74% of Indian businesses look at transforming and enhancing treasury operations as high priority, according to a report.

The survey was conducted in two phases: before and after the US trade tariff announcements in April. Despite these developments, the top long-term priority remained clear: leveraging data-driven financial intelligence to strengthen decision-making. 

Meanwhile, liquidity and foreign exchange (FX) management surged from seventh to second on the list of priorities.

Therefore, rising market volatility and upfront costs are prompting companies to explore innovative solutions such as blockchain based payments and regional treasury centres. 

The report also stated that despite India’s strong technology ecosystem, many firms still lack confidence in their ability to optimise treasury operations facing challenges with integrating digital tools effectively across complex financial structures. 

In the automotive sector, sustainability efforts are hampered by high EV costs, import dependence for batteries and components, and an underdeveloped charging infrastructure.

These structural barriers not only constrain market adoption but also complicate financial planning, eroding confidence in achieving long-term ESG goals. 

Meanwhile, energy sector players grapple with capital cost pressures, compounded by grid limitations, storage shortfalls, and regulatory uncertainty, which present key barriers to scaling renewable energy transitions effectively. 

Across global boardrooms, geopolitical instability remains the top macroeconomic concern, especially as tariff-related pressures heighten supply chain risks and raise the threat of new trade barriers. While inflation and interest rate volatility have marginally softened, they continue to pose challenges—amplified by the USD’s sustained dominance in global trade.

50% of finance leaders said supply chain reconfiguration continued to be a priority to diversify and strengthen their manufacturing footprint to be closer to customers. 

The US–China trade rift continues to reshape global trade patterns, triggering a shift toward alternate production and consumption hubs including India, which is emerging as a strategic pivot in global supply chains.

As global trade dynamics shift particularly with the rise in tariffs on Chinese electric vehicles (EVs) India is emerging as a strong contender to capture new market share. The rapid expansion of domestic production capacity is prompting firms to strengthen treasury operations, ensuring financial agility in an increasingly competitive landscape.