Indian CEOs optimistic about economic growth and embrace of GenAI: PwC annual global CEO survey

On the sidelines of the World Economic Forum in Davos, Pricewaterhouse Coopers (PwC) released its 27th Annual Global CEO Survey. The study showed a surge in confidence among Indian CEOs abot India’s economic growth, with 86 per cent anticipating an improvement in growth over the next 12 months.

According to PwC press release, the survey, encompassing insights from 79 Indian CEOs, showcases a remarkable 30 per cent increase in optimism within the past year.

India has reclaimed the fifth position as a preferred investment destination for global CEOs, marking a significant ascent from the ninth position in 2023.

The positive sentiment resonates globally, reflecting India’s growing allure for international investments.

A substantial 70 per cent of India CEOs express high confidence in their company’s prospects for revenue growth over the next three years.

In the short term, 62 per cent are extremely or very confident about their company’s growth in the next 12 months, outpacing the global figure of 37 per cent.

Adapting to changing customer preferences emerges as the prime reinvention driver for Indian CEOs. A majority (61 per cent) attribute shifts in how their companies create, deliver, and capture value to evolving customer preferences over the last five years.

India CEOs identify inflation, cyber risks, and health concerns as the top three threats in the next 12 months. Inflation and cyber risks take precedence, underscoring the need for vigilant risk management strategies.

India CEOs anticipate substantial benefits from GenAI, envisioning improvements in employee efficiency, personal performance, revenue, and profitability.

While acknowledging its potential to create new job opportunities, concerns about increased cybersecurity risk (71 per cent) and legal liabilities (53 per cent) are evident.

The top three reinvention actions identified by India CEOs for creating, delivering, and capturing value are adopting new technologies, developing novel products and services, and forming new strategic partnerships.

Sanjeev Krishan, Chairperson, PwC in India, remarked, “Despite continuing global headwinds, the Indian economy has remained resilient with expectations of a strong growth trajectory in the near future. While India CEOs will indeed play a big role in the country becoming a five-trillion-dollar economy, they will also need to reinvent their businesses and work culture to ensure long-term sustainable success.”

He added, “India’s business leaders will need to strategically tackle barriers such as regulatory constraints and a lack of tech capabilities to turn them into growth opportunities which will create lasting value for businesses, society and the environment.”

On climate action, Krishan stressed the urgency for business leaders to align strategies with climate priorities, fostering forward-thinking approaches.

Krishan said, “In today’s complex business environment, there is a real need for business leaders to develop forward-thinking strategies on technology and climate to stay relevant. India CEOs must realign their businesses while keeping climate priorities in mind as well as make bold moves to adopt new technology to enhance their capabilities.”

While 82 per cent of India’s CEOs report progress on energy efficiency projects, regulatory complexity, a lack of climate-friendly technologies, low demand from external stakeholders, and lower returns on climate-friendly investments pose challenges to decarbonisation efforts.

The survey underscores the need for Indian companies to navigate the complex business environment by incorporating technology and climate considerations into their strategies.