New Delhi: Despite multiple headwinds, most of which are a result of the covid-19 pandemic, India’s chief executive officers are extremely optimistic about the prospects for a stronger economy in the coming year.
According to the findings of PwC’s 25th annual global CEO survey, 99 percent of chief executives in India believe India’s economic growth will improve over the next year, while 94% are optimistic about global economic growth improving over the next year, compared to 77% of global CEOs.
Between October and November, 4,446 CEOs from 89 countries and territories, including 77 Indian CEOs, participated in the survey.
The CEOs are also optimistic about their own companies’ revenue prospects, with 98% of them anticipating development over the next 12 months.
While the majority of CEOs worldwide are at least as optimistic as they were last year about the prospects for economic development in 2022, the optimism of India’s CEOs stands out at 94%, up from 88% last year.
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“While Omicron has cast a shadow and CEOs are currently concentrated on the health and safety of their employees, CEO confidence and optimism over the past year demonstrates the resiliency of Indian businesses. Sanjeev Krishan, chairman of PwC in India, stated that 97% of India’s chief executive officers are optimistic about their company’s prospects for revenue growth not only in the short term but also over the next three years. This is likely due to the futuristic infrastructure laid during the difficult times.
While there is optimism, CEOs in India continue to be concerned about evident threats. 70% of Indian CEOs viewed the pandemic as a top threat to development in 2012, while 62% viewed cyber threats as a growth impediment. This year, 15% of Indian CEOs are concerned that cyber risks will impede their company’s ability to raise capital. 64% of India’s chief executive officers fear that a data breach could impede product or service sales, confirming that cyber risks can cause significant revenue disruptions.
In addition to business disruptions, 47% of CEOs believe cyber hazards could hinder their ability to develop new products and services.
About 89% of Indian CEOs are concerned about health hazards, which is 9% more than CEOs worldwide. Despite global vaccination campaigns, this may indicate that business executives wish to exercise caution when making early investments and business decisions, according to the survey.
The escalating geopolitical conflict has caused global disruptions in commerce, compounding the ongoing difficulty of the mutating covid-19 viral. Sanjeev continued, “After a difficult year, business executives are under pressure to produce top-line results. It will necessitate that they take proactive measures to mitigate current and prospective risks, whether those risks pertain to technology, cyber security, talent, or health.
The type of world we live in and pass on to the next generation will be determined by our focus on long-term challenges and issues such as climate change and social inequality in light of the highly uncertain and volatile environment in which we find ourselves.
Despite a growing interest in ESG, business metrics continue to influence strategy worldwide and in India. Most CEOs’ long-term strategies include objectives related to nonfinancial outcomes such as customer satisfaction, employee engagement, and automation or digitization. Targets associated with workforce gender representation and climate mitigation and adaptation are less well-represented in compensation strategies.
81% and 75% of Indian CEOs, compared to 71% and 62% of global CEOs, include customer satisfaction and employee engagement metrics in their long-term corporate strategies, respectively. In addition, 78% of Indian CEOs, compared to 54% of global CEOs, include automation and digitization objectives in their long-term corporate strategies.
The survey revealed that 17% and 14% of Indian CEOs, compared to 11% and 13% of global CEOs, incorporate gender representation and greenhouse gas emissions into their company’s annual bonus or long-term incentive plans, respectively.
27% of the participating Indian companies have already made a net-zero commitment (22% globally), 40% are in the process of developing and articulating their commitments (29% globally), and 30% have neither made nor are in the process of making a net-zero commitment (44% globally).
At the sector level, energy, utilities, and resources have made the most commitments to achieve net-zero emissions. This underscores the fact that high-emitting (and difficult-to-control) industries are frequently at the forefront of climate action, positioning them in the complex but crucial role of both problem-causer and problem-solver.
“Over the past 25 years of our Global CEO Survey, we have witnessed business leaders navigate the tide of uncertainty and lead the way to drive not only economic development but also societal change. The role of business leaders as agents of change will become increasingly prominent, and leaders must ensure that their efforts create long-term value while also fostering trust with the communities and stakeholders they serve.
Krishan concluded, “Effective collaboration between all stakeholders – organizations, individuals, and governments – can significantly improve not only their own prospects but also the prosperity and vitality of society as a whole.”
