The rising income levels, change in demographic profile, urbanisation and policy reforms have boosted the optimism of India’s CEOs for their companies’ revenue growth prospects in the next 12 months, said PwC’s 20th CEO survey report. The report states that 71% of India’s CEOs are extremely confident of their company’s revenue growth prospects over the next 12 months, as opposed to 38% of their global counterparts. In terms of optimism, CEOs in India surpass their Brazilian counterparts (57%) and Chinese counterparts (35%).
In addition 75% of CEOs in India are very confident of their revenue growth prospects over the next three years. “The India findings of the survey over the last two years indicate that this has been a consistent trend,” the report noted.
The CEOs, however expressed their concerns related to uncertain economic growth, over regulation, inadequate basic infrastructure, and availability of key skills. Around 82% of CEOs in India are concerned about uncertain economic growth, while 81% are concerned about over-regulation. “These concerns, coupled with the threat of protectionist trends and policies, are perceived as acute threats to growth ambitions, the survey says.
Besides, inadequate infrastructure and lack of availability of key skills in the country are other concerns that continue to bog CEOs. Eighty-one per cent of CEOs in India rated inadequate basic infrastructure as a top threat to growth as opposed to 54% of CEOs globally.
Further, 87% of India’s CEOs rated availability of key skills as a key threat to growth compared to 77% globally.
The report states that CEO’s in India are building a transformation agenda to achieve growth around three key themes: being fit for growth, strategy for digital world, and leveraging the use of man and machine.
Majority of CEOs in India (69%) expect to ‘cut costs to grow stronger’ and reinvest savings into fueling growth. They plan to adopt a transformative approach to cost management, capability development, and organisational and cultural evolution.
The companies are also adapting business strategies that fit in a digital world, and build a clearer line-of-sight into how digital investments will drive top line- and- or- bottom line results. Indian CEOs also believe man and machine should co-exist and specific skill sets such as innovation, problem-solving methodologies and adaptability are critical to future success, the survey report says.