- Confidence of CEOs in India in terms of growth prospects for the global economy over the next three years has considerably increased to 80 per cent in 2024 from 69 per cent in 2023
- 93 per cent CEOs in India compared to 92 per cent CEOs globally expect their organisation’s headcount to increase over the next three years
- Threats to growth have also shifted, with operational issues pushing ahead of cyber security, emerging/disruptive technology and environmental and climate change and last year’s number one threat geopolitics and political uncertainty
CEOs in India have shown resilience over the last few years as they have backed their businesses to prosper in the face of rapid technological advancements and geopolitical uncertainties that continue to shape our reality, a survey of 125 corporate leaders from across India finds.
The KPMG India CEO Outlook, now in its tenth year, revealed that CEOs in India have shown resilience over the last decade as their confidence in terms of growth prospects for the global economy over the next three years has considerably increased to 80 per cent in 2024 (up from 69 per cent in 2023). This substantial increase highlights a renewed optimism and determination in navigating long-term growth trajectories.
This confidence is demonstrated in CEOs in India’s future hiring plans, with 93 per cent saying they were looking to boost employee headcount over the next three years.
Factors that CEOs in India believe are top threats to growth have also shifted, with operational issues pushing ahead of cyber security, emerging/disruptive technology and environmental and climate change and last year’s number one threat – geopolitics and political uncertainty.
Yezdi Nagporewalla, CEO, KPMG in India said “ “From the race to embrace artificial intelligence (AI) to geopolitical uncertainties, the challenges faced by the CEOs in India over the last few years, are vast and complex. Alongside these external pressures, internal challenges such as upskilling of the workforce and hybrid working are pushing CEOs in India to be agile and flexible in their stakeholder management, while also keeping an eye on medium-term growth. What is very encouraging is, leaders in India are extremely committed to invest in future. Working around the above-mentioned challenges, calls for CEOs in India to be more resilient, nimble and innovative than ever before. As we look ahead, CEOs in India who are confident and adapt to the rapidly changing world and invest in the right technologies and talent are poised to deliver sustainable, long-term growth.”
Economic outlook and growth prospects- Confidence has remained relatively stable over the past three years.
- 80 per cent CEOs in India (Up from 69 per cent from 2023) compared to 72 per cent CEOs globally saying they are confident in the growth prospects for the global economy over the next three years
- Furthermore, reputational risk, including misalignment with customer and public sentiment, has emerged as one of the top three threats for CEOs in India alongside cybersecurity, emerging/disruptive technologies, and environmental/climate change
- 70 or higher per cent of CEOs in India believe that factors such as the cost of living, trade regulations, cybercrime and cyber insecurity, and talent shortages would negatively impact their organisations’ prosperity over the next three years.
Technology and generative AI-While today’s AI use-cases generate plenty of buzz in the public discourse, CEOs recognize the need to seize the challenges that lie ahead, considering AI’s potential to transform every aspect of our everyday life. They also recognize the transformative potential of AI — but many are struggling to build a workforce with the right skills to fully harness the opportunity.
- 86 per cent CEOs in India think generative AI will not fundamentally impact the number of jobs but will require upskilling and existing resources to be redeployed, compared to 76 per cent CEOs globally
- CEOs in India are also apprehensive about the pace of progress on generative AI regulations, with as many as 77 per cent CEOs in India compared to 69 per cent CEOs globally in agreement with this sentiment
- 70 per cent CEOs in India say they would invest in AI despite economic uncertainty, compared to 64 per cent CEOs globally
- 66 per cent of CEOs in India compared to 58 per cent of CEOs globally concur, that the integration of generative AI has necessitated a reassessment of the skills required for entry-level roles.
ESG- This year’s findings expose the challenges of navigating ESG priorities. Alongside a growing awareness of ESG’s impact on trust and reputation, the increasingly politicized nature of the ESG agenda is heightening the pressure felt by today’s leaders.
- 66 per cent CEOs in India say they would be willing to divest a profitable part of the business that was damaging their reputation, compared to 76 per cent CEOs globally
- 75 per cent CEOs in India reveal that while they’ve retained the same climate related strategies over the last 12 months, they’ve adapted the language and terminology they use internally and externally to meet changing stakeholder needs, compared to 69 per cent CEOs globally.
Talent- CEOs are hardening their stance on returning to pre-pandemic ways of working while acknowledging that other talent-related issues could affect future growth and competitiveness.
- 91 per cent CEOs in India compared to 87 per cent CEOs globally are prepared to reward employees who consistently come into the office with promotions, raises, and more favourable assignments
- CEOs in India are equally (50 per cent) emphasising on the importance of developing workforce skills and capabilities alongside technological investments
- 78 per cent CEOs in India expect a full return to the office within the next three years, compared to 83 per cent CEOs globally.
