A significant majority of Indian CEOs continue to express strong confidence in the nation’s economic growth, with plans for workforce expansion and ongoing integration of AI technologies. According to PwC 28th Annual Global CEO Survey: India Perspective, released during the World Economic Forum in Davos, 87% of Indian CEOs are optimistic about the country’s economic prospects, outpacing the global average of 57%. Additionally, 74% of Indian CEOs are confident in their companies’ revenue growth over the next three years.
This optimism is supported by India’s strong economic fundamentals, including its young, skilled workforce, infrastructure development, and improvements in ease of doing business. However, challenges such as technological disruption, macroeconomic volatility, inflation, and a shortage of skilled labor remain concerns for many CEOs.
Sanjeev Krishan, Chairperson of PwC in India, highlighted that CEOs must navigate a rapidly changing landscape, addressing emerging trends like climate change and AI, evolving customer expectations, and shifting market dynamics.
While 51% of Indian CEOs see the potential for Generative AI (GenAI) to boost profitability, trust in AI remains a significant concern, with only a third of CEOs expressing high confidence in its seamless integration into business operations. This cautious approach is balanced by plans to increase hiring, with 68% of Indian CEOs intending to hire more staff in the coming year, a notable rise from 57% last year.
Krishan stressed that GenAI is not merely a technological advancement but a strategic revolution for businesses. He advised Indian CEOs to embrace its benefits while being mindful of potential risks, emphasizing that responsible AI practices can help mitigate many concerns.
The survey also revealed that Indian CEOs are increasingly prioritizing sustainability. Over a third of CEOs reported revenue growth from climate-conscious investments over the past five years, with over 60% noting that these initiatives either reduced costs or had no significant financial impact. Additionally, 58% of Indian CEOs said that a portion of their personal incentive compensation is linked to sustainability metrics, slightly higher than the global average of 56%.
However, many companies are still working to translate these climate-friendly investments into additional revenues. Sustainability is becoming a core component of business strategy, not just as a stakeholder concern but also as an investment driver.
The survey also highlighted the growing trend of business reinvention. Forty percent of CEOs worldwide and in India reported that their companies have ventured into new industries in the last five years. In India, 50% of CEOs indicated that between 1-20% of their revenue came from these new ventures. The most common strategies for reinvention included developing innovative products, targeting new customer bases, and exploring direct-to-consumer sales models.
Krishan concluded by emphasizing the importance of continuous reinvention for business sustainability, urging CEOs to question established business models and explore how external shifts could unlock new opportunities. PwC’s survey of 4,701 CEOs across 109 countries was conducted between October 1 and November 8, 2024, with results weighted to reflect the global economic landscape. PwC continues to focus on building trust in society while addressing key global challenges through its network of over 327,000 professionals in 152 countries.
