New Delhi: Confidence in India’s company corner rooms has climbed and now far outpace that at their global counterparts despite concerns over economic growth, regulation and protectionism, a global survey showed.
According to the results of PricewaterhouseCoopers’s 20th global survey of chief executive officers released on Tuesday, 71% of India’s CEOs are very confident of their company’s prospects for revenue growth over the next 12 months as opposed to 64% a year ago. Worldwide, only 38% of CEOs exude similar confidence.
Across geographies, the concerns on top of CEOs’ minds seem to be similar. This year, 82% of CEOs are concerned about uncertain economic growth, while 81% are concerned about over-regulation. These concerns, along with looming protectionism, are seen by CEOs as threats to growth.
In India, 64% of the CEOs surveyed were concerned about protectionism, against 59% globally. Inadequate infrastructure and the lack of availability of key skills in the country—key enablers for growth— continue to be major concerns.
Eighty-one per cent of CEOs in India rated inadequate basic infrastructure as the 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.
Strong growth fundamentals and upcoming policy reforms, including the Goods and Services Tax (GST) expected to be rolled out on 1 July, are giving CEOs reasons to be optimistic about the overall business environment in India. Foreign direct investment (FDI) into the country has grown by 53% in the past two years to reach $55 billion in 2015-16.