Indian CEOs are more optimistic about the country’s economic growth over the next one year versus their global counterparts.
According to PwC’s 26th annual global CEO survey, around 37% in larger Asia Pacific territories show a higher level of optimism about their nations’ prospects than their global counterparts at 29%. About 57% of India CEOs, 64% from China and 50% from Indonesia believe that their respective territory’s economic growth will improve over the next 12 months.
At the same time, the global downturn will have a lower impact on countries such as Indonesia and India, where economic prosperity is buffered by significant domestic demand, according to the survey.
“The global economic climate is undoubtedly uncertain. Over 4,400 CEOs, including 68 from India, from 105 countries and territories responded to the survey between October and November 2022,” said a note.
About 78% of India CEOs against 73% of global peers foresee a decline in global economic growth over the next 12 months. Despite signs of a global economic slowdown, continuing high inflation and the ripple effects of the war in Europe, the outlook for India’s growth has largely been positive.
Indian CEOs highlighted that inflation, macroeconomic volatility, climate change and geopolitical conflict were the key threats in the next 12 months.
Also, about four in ten CEOs — global and India —think their organisations will not be economically viable in ten years, if they continue on their current course. The survey also indicates that given the changing customer demands and supply chain disruptions, CEOs are looking at reinventing their companies over the next five years with the required investments in technology and people — both leaders and workers — without reducing the workforce size, to better meet the challenges of the future.
In further findings, 67% of India CEOs are adjusting supply chains to mitigate exposure to geopolitical conflict. About 60% of Indian companies are currently innovating new, climate-friendly products or processes, while 85% of India CEOs do not plan to reduce the size of their workforce, while 96% do not plan to reduce compensation.
According to the survey, neither uncertainty nor anxiety cloud the view from the top. “India CEOs are cognizant of the undeniable linkage between profitability and sustainability, between technological disruption and innovation, between a strong balance sheet and the need for investments, and between business reinvention and a talented workforce,” it highlighted.