Indian CEOs’ Confidence Level Highest in the World
Date: Wednesday , April 01, 2009
India may not be catching up with high-tech and developed countries in filing technology patents. But when it comes to confidence in running a business, Indian CEOs simply outshine their foreign counterparts.
Indian CEOs have the highest confidence level amongst the emerging economies, with 70 percent of them expressing confidence about both short term and long term revenue growth, compared to just 21 percent and 34 percent globally.
Only 50 percent of business heads in India think that the crisis in the international banking system will affect their businesses, compared to the 70 percent of their global counterparts, according to PricewaterhouseCoopers’ 12th Annual Global CEO Survey. As part of this study, 1,124 CEOs in 50 countries were interviewed during the last quarter of 2008.
"This confidence is extremely significant since it signals the inherent strength of the Indian market and its continuing potential for growth even in the face of crisis," says Ramesh Rajan, Chairman of PwC, India.
High level of pessimism is looming across all geographic regions, business sectors, and strata of economic development. Only 15 percent of CEOs both in North America and Western Europe are confident about growth prospects for the next 12 months. In the meanwhile 21 percent of head honchos in the emerging economies of Central and Eastern Europe, 31 percent in Asia Pacific, and 21 percent in Latin America express confidence in future.
However, Indian CEOs are optimistic about the growth prospect for the next 12 months as 89 percent of them expect to make a return on investment in products or services provided, compared to 69 percent globally. While 60 percent of Indian CEOs say that they are likely to grow their businesses by penetrating existing markets better, only 37 percent of their global counterparts dare to think so.
Indian business leaders also think merger and acquisition activities are likely to play a greater role in the growth of their businesses than joint ventures or strategic alliances, in contrast with the global trend.