Indian CEOs are showing increased confidence in the global economy’s growth prospects over the next three years, according to the KPMG 2024 India CEO Outlook report released today. However, they remain cautious about their own companies’ growth trajectories amid ongoing challenges.
The evolving risk landscape has shifted CEOs’ views, with 16% of Indian CEOs citing operational issues as the biggest growth threat, up from 10% in 2023. Globally, this concern is echoed by 14% of CEOs.
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 organisation’s prosperity over the next three years.
The report, which surveyed 125 CEOs in India, reveals a significant increase in optimism, with 80% expressing confidence in global prospects, up from 69% in 2023. This positive shift outpaces the global average and underscores the determination of Indian business leaders to navigate long-term growth.
Yet, despite this overall economic optimism, Indian CEOs are somewhat less confident about their companies’ growth prospects. The report indicates a slight decline in confidence levels, falling from 71% in 2023 to 68% in 2024, reflecting a trend seen globally.
This cautious outlook stems from ongoing uncertainties related to geopolitical complexities, economic instability, and rapid technological advancements.
Gen AI gains focus but regulation concerns
Seventy-one per cent of Indian CEOs understand how generative AI can boost performance and provide a competitive edge, compared to 76% globally. However, 77% of Indian CEOs are concerned about the slow pace of generative AI regulations, versus 69% globally.
CEOs in India believe that generative AI will increasingly be utilised to drive productivity gains and value creation across the workforce, with 18 per cent of CEOs in India compared to 16 per cent of CEOs globally agreeing with the statement.
Other benefits that CEOs in India view as the major advantages of implementing generative AI technologies include new product and market growth opportunities, and upskilling the workforce for future readiness.
Indian CEOs firmly support return to office
Seventy-eight per cent of Indian CEOs, compared to 83% globally, expect their employees to return to in-office work within the next three years. To encourage this transition, 91% of Indian CEOs, versus 87% globally, are willing to reward employees who consistently come into the office with promotions, raises, and better assignments.
“The survey has indicated that a significant portion of the CEOs in India envision a future predominantly characterised by in-office work environment,” Sunit Sinha Partner and Head- Human Capital Advisory Solutions, Business Consulting KPMG in India.
Indian CEOs also recognise the need to develop workforce skills alongside technological investments. Over 80% believe shifts in the labour market, especially an ageing workforce, will moderately impact their organisations’ recruitment, retention, and overall culture.
Moreover, more than half of Indian CEOs (54%) agree, compared to 60% globally, that there is strong public pressure on businesses to tackle societal challenges like inclusion, diversity, equity, social justice, and climate change.
The tenth edition of KPMG’s CEO Outlook, conducted with 1,325 CEOs, including 125 from India, between 25 July and 29 August 2024, offers valuable insights into the mindset and strategies of today’s CEOs.