About 66% CEOs in India anticipate a recession to hit over the next one year, and 86% predict it will impact company earnings by up to 10%, according to the KPMG 2022 India CEO Outlook. However, while their global counterparts are far more certain of a recession in the next 12 months as 86% anticipate a recession, there are fewer—71% CEOs globally predicting it will impact company earnings by up to 10%.
The KPMG 2022 India CEO Outlook which asked more than 125 CEOs in India about their strategies and outlook, revealed that 58% of leaders in India as well as globally expect a recession to be mild and short. Pandemic fatigue, economic factors, including the threat of rising interest rates, inflation and anticipated recession and reputational risk, top the list of most pressing concerns for CEOs in India today.
About 62% of CEOs in India compared to 73% globally believe that a recession will upend anticipated growth. However, senior executives in India as well as globally also feel markedly more confident about the resilience of the global economy over the next six months than they did in February 2022.
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Yezdi Nagporewalla, CEO, KPMG in India, said, “Be it the business ecosystem, or supply chain or issues pertaining to talent, the magnitude of these challenges has altered dramatically and what matters is how agile business leaders are to respond.
CEOs in India surveyed appear confident about their organisation’s resilience, they also seem to have prepared themselves to make the most of the current environment, brought on by the promise of technology, talent and ESG.”According to the survey, anticipated recession is driving talent freezes, but when CEOs take a longer-term view, 79% CEOs in India and globally expect their organisation’s headcount to increase over the next three years.
Also, the current uncertainty is driving CEOs in India to continue to prioritise digital transformation with 61% agreeing they have an aggressive digital investment strategy, intended to secure first-mover or fast-follower status.In the longer-term, little less than a quarter or 23% CEOs in India believe that advancing digitalisation and business connectivity is also vital to achieving growth objectives over the next three years. Also, 57% CEOs in India agree that their organisation’s digital and ESG strategic investments are inextricably linked.