Indian CEOs Show Strong Optimism For Economic Growth, But Face Challenges

A significant 87% of Indian CEOs are optimistic about the country’s economic growth, far surpassing the global average of 57%, according to PwC’s 28th Annual Global CEO Survey. This positive outlook extends to their companies, with 74% of Indian CEOs expressing strong confidence in revenue growth over the next three years. The survey, which included over 4,700 CEOs from 109 countries, offers key insights into the evolving business landscape.

Despite their optimism, Indian CEOs remain cautious about several challenges. Technological disruption tops the list of concerns, followed by macroeconomic volatility, inflation, and the limited availability of skilled labor. Disruptive technology, in particular, is identified as one of the top two factors impacting the economic viability of their companies.

“For CEOs today, the challenge is to envision the ecosystem in which their company will operate in the future,” said Sanjeev Krishan, Chairperson of PwC India. “This includes considering the impacts of megatrends like climate change and AI, evolving customer needs, shifting value pools, and the roles their companies will play.”

Generative AI: A Double-Edged Sword

A major area of focus for Indian CEOs is the impact of Generative AI (GenAI), which has proven to drive efficiency and increased revenue globally. In India, 51% of CEOs are optimistic about GenAI’s positive impact on profitability. However, there is a notable concern about trust, with only one-third expressing high confidence in integrating AI into business processes.

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As businesses look to capitalize on AI-driven growth, 68% of Indian CEOs plan to increase headcount in the next year, up from 57% last year. This trend mirrors the global shift, where 42% of CEOs are also planning to hire more staff, largely driven by AI adoption.

“GenAI is not just a technological evolution but a strategic revolution, reshaping the global business landscape. Indian CEOs should harness its potential while proactively managing associated risks,” Krishan added. “Embedding responsible AI practices into GenAI strategies from the outset can help mitigate many challenges.”

Climate-Friendly Investments Yield Positive Results

The survey also sheds light on the growing trend of climate-friendly investments. More than one-third of Indian CEOs reported revenue increases from these investments over the past five years. Additionally, over 60% stated that these investments either reduced costs or had no significant impact on costs.

This aligns with the increasing emphasis on sustainability, with 58% of Indian CEOs having personal incentive compensation linked to sustainability metrics—slightly higher than the global figure of 56%. The survey suggests that higher compensation tied to sustainability is often linked to increased revenue from climate-friendly investments.

Strategic Reinvention And Market Expansion

Indian CEOs have been taking significant steps to adapt and grow their businesses. Over the past five years, the most common actions included developing innovative products and services and exploring new market routes, such as direct-to-consumer sales instead of relying on intermediaries. Additionally, 38% of Indian CEOs—compared to 32% globally—focused on acquiring new customer bases.

Collaboration also plays a key role, with 26% of Indian CEOs, mirroring the global trend, prioritizing partnerships with other organizations as part of their strategic reinvention.

As India’s business leaders continue to navigate a rapidly changing global landscape, their optimism remains strong, driven by a focus on innovation, sustainability, and the strategic adoption of new technologies like GenAI. However, the challenges they face highlight the complexities of leading in a volatile and competitive environment.