India CEOs Tackle Growth Challenges: PwC Survey
PwC’s 28th Annual Global CEO Survey, India Perspective underscores India’s growing influence on global innovation, sustainability, and reinvention. The survey, which polled over 4,700 CEOs across 109 countries, including more than 75 from India, reveals a striking optimism among Indian business leaders about the nation’s economic prospects and their companies’ future growth.
An overwhelming 87% of India CEOs expressed confidence in the country’s economic trajectory, significantly outpacing the global average of 57%. Additionally, 74% of India CEOs are optimistic about revenue growth in the next three years, bolstered by factors such as robust economic performance, improvements in ease of doing business, infrastructure development, and a young, skilled workforce.
Despite this optimism, challenges persist. Technological disruption remains a primary concern, with India CEOs identifying it as a top factor impacting economic viability. Macroeconomic volatility, inflation, and a shortage of skilled labor are also cited as significant hurdles. These challenges underscore the complexities of navigating a rapidly evolving business landscape. Sanjeev Krishan, Chairperson of PwC India, emphasized the need for CEOs to anticipate changes in their ecosystems, including the impacts of megatrends like climate change, artificial intelligence (AI), and evolving customer demands.
Generative AI (GenAI) has emerged as a transformative force in global business. Over the past year, it has delivered efficiency gains and revenue growth worldwide. In India, 51% of CEOs view GenAI as a profitability driver, but trust remains a concern, with only one-third expressing high confidence in AI integration into business processes.
This cautious optimism is prompting 68% of India CEOs to plan for increased hiring, a notable rise from 57% last year. Globally, 42% of CEOs are set to expand their workforce, with many viewing AI as an enabler rather than a replacement for human talent. Krishan highlighted that GenAI represents a strategic revolution requiring responsible practices to mitigate risks and unlock its potential fully. The survey also reflects a shifting perspective on climate change among Indian CEOs.
In 2019, few leaders acknowledged the importance of climate-related data in long-term decision-making. However, the needle has shifted significantly, with over a third of CEOs reporting revenue gains from climate-friendly investments over the past five years. Moreover, more than 60% indicated that these investments had reduced costs or had no significant financial impact. A notable 58% of Indian CEOs now link their personal incentive compensation to sustainability metrics, slightly exceeding the global average of 56%.
While many companies are yet to fully monetize climate-friendly initiatives, such as transitioning to energy-efficient operations, greener products, and emission-reducing technologies, sustainability is increasingly viewed as a core business imperative. These efforts are not merely about stakeholder management but also represent a critical vector for future investment and growth.
The imperative for reinvention is another key theme highlighted in the survey. External and internal challenges, including macroeconomic conditions and geopolitical shifts, are driving businesses to rethink their strategies. Over the past five years, four in ten Indian CEOs have ventured into new sectors or industries. Of these, 50% reported generating up to 20% of their revenue from these ventures. This willingness to explore new markets is mirrored globally, where 58% of CEOs have achieved similar outcomes.
In India, reinvention has largely been fueled by the development of innovative products and services and the adoption of direct-to-consumer sales models. Additionally, 38% of Indian CEOs have targeted new customer bases, surpassing the global average of 32%. Collaborative efforts with other organizations have also been a significant strategy, with 26% of CEOs in India and globally leveraging partnerships to drive growth.
Krishan concluded that the path to responsible business viability lies in questioning deeply ingrained beliefs about organizational models. Transformation, he argued, requires both introspection and an acute awareness of external dynamics, enabling businesses to harness opportunities in an ever-changing environment. By embracing reinvention, sustainability, and technological innovation, Indian CEOs are positioning their companies for long-term success in a complex global landscape.
This year’s survey reinforces the notion that while challenges such as technological disruption, inflation, and talent shortages remain, India’s CEOs are optimistic and forward-thinking. Their proactive approach to integrating GenAI, addressing climate change, and exploring new markets is setting the stage for a transformative decade of business leadership.
