Back99% CEOs foresee better India growth over the next 12 months: PwC
Also, 94% of these CEOs are optimistic about global economic growth improving during the period, compared to 77% of global CEOs.
PremiumNEW DELHI : Corporate leaders in India are bullish of the economic recovery gaining momentum despite headwinds, especially the ongoing third wave of the pandemic.
As much as 99% of chief executive officers (CEOs) surveyed by PwC in India believe the country’s economic growth will improve over the next 12 months. Also, 94% of these CEOs are optimistic about global economic growth improving during the period, compared to 77% of global CEOs.
PwC’s 25th annual global CEO survey polled 4,446 CEOs in 89 countries and territories between October and November 2021. The India part of the survey polled 77 CEOs.
As per the survey, the CEOs from India also remained bullish on revenue prospects of their companies, with 98% confident about growth over the next 12 months.
The survey showed that while CEOs globally are more optimistic about prospects of economic growth this year than in 2021, those from India showed an increase in optimism at 94%, up from 88% last year.
“While Omicron has cast a shadow and CEOs are focused on the health and safety of their employees at the moment, CEO confidence and optimism over the past one year is testimony to the resilience of Indian companies. Perhaps owing to the futuristic groundwork done during the difficult times, 97% of India CEOs are confident about their own company’s prospects for revenue growth not only in the near term but also over the next three years," Sanjeev Krishan, Chairman, PwC in India said.
To be sure, business leaders in India showed concerns on some lingering issues. Last year, 70% of the CEOs viewed the pandemic as a top threat to growth, while 62% considered cyber threats as an impediment. This year, 15% of CEOs in India are apprehensive about cyber risks hindering their company’s ability to raise capital. India CEOs also agree that cyber risks could cause severe revenue disruptions, with 64% of respondents fearing a breach could hinder sales.
Also, 47% of CEOs believe cyber threats could impede their ability to develop products and services.
About 89% of CEOs in India are concerned about health risks—9% higher than their global counterparts. This is perhaps an indication that business leaders would like to exercise caution when it comes to making early investment and business decisions, despite vaccination drives worldwide, the survey said. Adding to the threat from covid-19 is rising geopolitical conflict, which has disrupted global commerce.
Krishan said that “after a challenging year, business leaders are under pressure to deliver top-line results. It will require them to take proactive steps to mitigate current and future risks —be they around technology, cyber security, talent or health. Focusing on long-term challenges and issues around climate change and social inequality also becomes extremely crucial given the highly uncertain, volatile environment we are in and will define what sort of world we live in and hand down to the next generation."
Despite rising interest in Environmental, Social, and Corporate Governance or ESG, corporate strategy continues to be driven largely by business metrics, both globally and in India. Most CEOs have goals linked to non-financial outcomes such as customer satisfaction, employee enagement, and automation or digitization in their long-term strategy. Less well-represented, in strategies and compensation, are targets related to workforce gender representation and climate mitigation and adaptation.
About 81% and 75% of India CEOs, as against 71% and 62% of global CEOs, include customer satisfaction and employee engagement metrics respectively in their company’s long-term corporate strategy. Also, 78% of India CEOs, as against 54% of global CEOs, include automation and digitization goals in their company’s long-term corporate strategy, the survey showed.
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