Indian CEO optimism about the economy has seen a 30 per cent jump over last year, according to a global CEO survey. Yet they remain cautious in forecasting economic improvement within their own regions.
India’s business leaders face many risks related to inflation, macroeconomic volatility, climate change and geopolitical conflicts that threaten financial security. If you need more information about: rajkotupdates.news : indian ceos expect economic growth just follow us and get all information.
Optimism is high among Indian CEOs
PwC conducted its 27th annual global CEO Survey polling 4,702 CEOs from 105 countries and territories – including 79 in India – and found that most Indian CEOs are optimistic about the economy, believing it will grow despite current challenges. 86% were certain the economy would improve; an increase of 30 percentage points since last year. Furthermore, 62% expressed extreme or very strong confidence about revenue growth for their company; an unprecedented figure around the globe.
This report also underscored the critical role that CEOs play as drivers of change within their businesses, with executives emphasizing innovating products, adopting new technologies, and building resilient organisations as ways to adapt and survive in challenging climates. Furthermore, CEOs were observed embracing change management techniques such as reassessing strategies and work cultures in order to adapt with an ever-evolving business landscape.
Over the next several years, most CEOs anticipate an improved global economic outlook; however, most remain concerned about any short-term repercussions from economic crisis. Of Indian CEOs surveyed, 37% are somewhat concerned by current conditions while the remaining keep a close watch on events.
Most CEOs in India are optimistic about GenAI and its ability to increase employee efficiency and performance, increase revenues and profitability and reduce job loss. A majority believe GenAI will lead to increases in revenue and profitability as well as job shrinkage; however, around 30% think GenAI may lead to job reduction while 48% forecast that it will have no or limited effect on employee numbers in their companies and 13% anticipate an increase.
Inflation is a key concern
India CEOs remain optimistic that economic growth will improve this year, yet are concerned about higher inflation as an external threat to their businesses. Global CEOs face similar concerns regarding inflation.
PwC conducted an international CEO survey polling 4,702 CEOs from across 105 countries and territories – 79 from India – about their optimism regarding revenue growth for their businesses in the next 12 months.
According to the survey, India CEOs were most optimistic about their company’s prospects over the next five years – 62% described themselves as being either extremely or very optimistic – although higher inflation and cyber risks were major concerns they highlighted as well.
Food price inflation has seen a recent uptick, which may negatively impact consumer spending habits and borrowing costs. With interest rates on the rise and food inflation on the increase, this could amplify this effect further.
India is growing faster than many major economies, with GDP increasing 6.6% last year and growth projections for this fiscal year being increased to 7% by the Reserve Bank of India. Yet inflation fears persist.
Survey results also demonstrated that CEOs were especially worried about climate change, with 28% declaring themselves extremely or highly exposed. This may be attributed to India being one of the fastest-growing economies when it comes to energy consumption and emissions.
This survey revealed that most India CEOs are taking proactive steps to combat environmental issues, with 31% having completed projects that lessened their environmental footprint and 23% planning to complete such initiatives (with another 8% currently underway). Furthermore, 85% of Indian CEOs surveyed do not intend to reduce employee compensation or wages; instead they continue taking other steps such as creating sustainable products or processes as measures against climate change.
CEOs are reducing or planning to reduce operating costs
As economic growth stalls, Indian CEOs are cutting or planning to cut operating costs to remain competitive, according to PwC’s 27th annual global CEO survey, conducted between October and November 2022 in 105 countries and territories worldwide, including 68 in India.
According to the report, almost 80% of Indian CEOs expect economic growth worldwide to slow in 2019. But nearly half remain confident about their country’s prospects compared to just 37% last year in Asia Pacific and 29% worldwide.
CEOs are responding to increasing global geopolitical risks by adapting supply chains, diversifying products and services, investing more in cybersecurity and data privacy, expanding into new markets and stressing the importance of including potential future disruptions into scenario planning and corporate operating models. This allows them to take proactive measures before crises unfold and avoid an expensive downturn.
Indian CEOs remain upbeat despite a global economic climate which remains grim, as 5 out of 10 believe their revenue will increase within 12 months – this percentage ranks highest of all CEOs worldwide.
The report revealed that many CEOs are taking measures to remain competitive by cutting or planning to cut operating costs, with 93% of Indian CEOs compared to 85% globally and 81 in Asia-Pacific reporting they are cutting or planning to cut operating costs in response to current conditions; 85% did not plan to reduce headcount while 96% stated their intent not to decrease compensation, showing their resolve in keeping talent.
The survey also indicated that CEOs are turning their focus to innovation to drive productivity and revenue growth, with nearly half of Indian CEOs investing in R&D initiatives for innovative, cost-effective technologies that enhance customer experiences; this represents a substantial jump since last year, when only 37 per cent of CEOs took such steps.
CEOs are concerned about change
As India’s economy strengthens, CEOs in India remain optimistic about revenue growth in 2022. PwC’s 27th Annual Global CEO Survey reports that 86% of India leaders believe the economy will expand over the next year; this represents an 18% increase over last year’s figures. Still, many CEOs remain concerned that they must adopt change quickly if their businesses want to remain relevant in future trends.
CEOs face two short-term concerns – cyber threats and inflation – while longer term, they must reinvent their businesses and work cultures to achieve sustained success.
Nearly four in five of India’s top executives include nonfinancial outcomes such as customer satisfaction, workforce gender diversity and climate mitigation/adaptation in their business plans; however, many CEOs still place less importance on these goals when creating strategy.
Though the short-term outlook in India remains optimistic, CEOs understand that their economy will present daunting challenges in 2024. They are actively preparing themselves for such obstacles as tight financial conditions, geopolitical tensions and rapid advancement of generative artificial intelligence (AI).
Survey results indicated that nearly two-thirds of India CEOs reported progress in reducing operating costs at their companies. Most CEOs prioritize cost reduction, increasing revenue growth, and investing in new technology as ways of cutting operational expenses. While their immediate effects will likely be minimal, many expect significant improvements over time.
In addition, the survey revealed that most CEOs are taking steps to mitigate disruptions posed by European conflict. Many are considering responses by adapting supply chains, diversifying product offerings and investing in cybersecurity – although 85% do not plan to reduce headcount and 96% don’t intend to reduce compensation levels in response.
India CEOs are responding to climate change by integrating sustainability measures into their corporate operating models and investing in talent. More specifically, they are increasing investments in digital transformation and cybersecurity while decreasing waste, energy consumption and carbon emissions. Furthermore, CEOs across India recognize they need to engage with employees to encourage them in supporting these efforts.
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