9 out of 10 Indian CEOs plan headcount increases, AI expansion amid economic growth confidence: PwC Report

A recent survey by PwC reveals that nearly 9 out of 10 CEOs in India remain confident in the country’s economic growth, with a strong emphasis on expansion, including increasing headcount and continuing the rollout of Artificial Intelligence (AI) technologies.

As global leaders gather in Davos under the theme “Collaboration in the Intelligent Age,” PwC’s 28th Annual Global CEO Survey – India Perspective underscores India’s pivotal role in driving global innovation, sustainability, and economic growth. 

The survey, which included 75 Indian CEOs out of over 4,700 global respondents from 109 countries, shows that 87% of Indian CEOs are optimistic about the nation’s economic future, significantly higher than the global average of 57%.

74% Indian CEOs certain of revenue growth

Additionally, 74% of Indian CEOs express confidence in their companies’ revenue growth over the next three years, driven by the country’s economic resilience, improved ease of doing business (EoDB), infrastructure developments, and a young, skilled workforce.

Despite this optimism, the survey highlights ongoing challenges, with technological disruption as the top concern for Indian CEOs, followed by macroeconomic volatility, inflation, and the availability of skilled labor. Disruptive technologies, including AI, were identified as significant factors affecting the economic viability of many Indian businesses.

Sanjeev Krishan, Chairperson, PwC in India, said, “For CEOs today, the challenge is to envision the ecosystem in which their company will operate in the future. This includes thinking through the impacts of megatrends like climate change and AI, evolving customer needs, shifting value pools, and the roles that their company will play.”

Integration of AI in work environment

AI, especially Generative AI (GenAI), has emerged as a key focus area for global business leaders. In India, 51% of CEOs are optimistic about GenAI’s potential to enhance profitability, although trust remains a barrier.

Only a third of Indian CEOs are highly confident in AI’s seamless integration into business operations. Nevertheless, AI’s potential to drive growth and efficiency is clear, with 68% of Indian CEOs planning to increase their workforce in the upcoming year, up from 57% last year.

Krishan further added, “India CEOs should embrace GenAI’s potential while also taking steps to manage risks. Responsible AI practices can mitigate many issues and are most effective when baked into GenAI strategy from the start.”

1/3 CEOs report positive impact of green investments

Sustainability is also gaining traction, with over one-third of Indian CEOs reporting revenue growth from climate-friendly investments over the past five years, signaling a shift in corporate priorities. Moreover, over 60% of these CEOs noted that such investments either reduced costs or had no significant cost impact.

Sustainability metrics now play a role in executive compensation, with 58% of Indian CEOs stating that part of their personal incentives is linked to sustainability performance, slightly above the global average of 56%. This financial alignment underscores the growing significance of climate-conscious investments for long-term profitability.

While not all climate-friendly initiatives have directly led to revenue growth, the survey suggests that sustainability is increasingly embedded in business models as both a stakeholder responsibility and a driver of future investments and profitability.

40% of CEOs explore new sectors for growth

As macroeconomic and geopolitical shifts continue to impact the global business landscape, the need for reinvention is more critical than ever. PwC’s survey found that 40% of CEOs in India and globally have ventured into new sectors or industries over the past five years, indicating a growing trend of diversification as a key growth strategy.

For Indian CEOs, innovation in products and services remains the most common approach to reinvention, with 40% focusing on new products and direct-to-consumer routes. Additionally, 38% of Indian CEOs are working to acquire new customer bases, while 26% are pursuing collaborations with other organizations to foster growth.