Almost two-thirds of UK companies expect to earn more than 20% of their revenues from emerging markets like China and India within the next five years, a survey has revealed.
Some 60% of the 540 senior executives from 19 business sectors questioned in the Government-commissioned survey said that they expected to reach this level by 2014, almost doubling the 31% who say they have already done so.
Some 77% of the companies questioned said that they expect the prospects for the world economy to improve during 2010/11, with emerging markets providing support for global profitability.
The survey, commissioned by UK Trade and Investment, was released as Business Secretary Lord Mandelson urged British firms to step up their efforts to seek out opportunities in the emerging markets.
Addressing the Economist Emerging Markets Summit in London, Lord Mandelson will say: "UK businesses should be strategic about their exports and plan for the long term.
"Many emerging markets are outperforming developed economies, and are expected to grow strongly for years to come. This represents an exciting opportunity for UK business providing greater diversity for the exporter."
The report, entitled Survive and Prosper, notes that emerging economies outperformed those of recession-hit developed countries in 2009.
China was cited as the preferred investment destination over the next year by 45% of businesspeople questioned, followed closely by India (43%) and other Asian nations (35%).
But half of respondents said that political risks - including the dangers of nationalisation and expropriation - were the main obstacle to doing business in these new markets.
Lord Mandelson will say: "The global recession was a wake-up call for companies to diversify their export base and seek out new opportunities in the emerging world. UK business needs to adapt its strategy accordingly to reap long-term rewards."
