Indian CEOs optimistic about growth in 2024, new survey finds
The vast majority of chief executives in India are optimistic about economic growth in the coming 12 months, according to a new survey by PwC.
The accountancy and consulting giant’s 27th annual global survey polled 4,702 chief executive officers (CEOs) in 105 countries and territories, including 79 in India. It found 86% of CEOs in India are confident that the economy will improve, a 30% increase over the 2023 survey.
By comparison, just 44% of global CEOs believe the economy would improve in their countries. The optimism about the Indian economy is reflected worldwide, with the country becoming the fifth top investment destination for global CEOs; it was ninth in 2023.
Some 62% of business leaders in India told the survey they were “extremely or very confident” about their companies’ growth prospects over the next 12 months. Only 37% of global CEOs said the same.
CEOs in India listed inflation and cyberattacks as the biggest threats to their companies in the next 12 months.
India’s annual retail inflation hit a 15-month high of 7.44% in July 2023 before cooling down to around 5.5% in November 2023, PwC said.
As many as 28% of India CEOs regarded cyberattacks as a top threat compared with 18% in 2023.
“Despite continuing global headwinds, the Indian economy has remained resilient with expectations of a strong growth trajectory in the near future. While India CEOs will indeed play a big role in the country becoming a five-trillion-dollar economy, they will also need to reinvent their businesses and work culture to ensure long-term sustainable success,” said Sanjeev Krishan, chairperson, PwC in India.
“India’s business leaders will need to strategically tackle barriers such as regulatory constraints and lack of tech capabilities to turn them into growth opportunities, which will create lasting value for businesses, society and the environment,” he said.
Investment in AI set to increase
At the same time as PwC published its survey, Capgemini unveiled its latest report on 2024 investment priorities for business leaders.
It found that they are increasingly recognising the value of artificial intelligence (AI) and generative AI, with 90% of Indian business leaders planning to increase investment in these technologies in the next 12-18 months.
Of these business leaders, 58% see generative AI as an opportunity to boost revenue and innovation.
Capgemini spoke to business leaders from 2,000 organisations in 15 countries for its survey, including India, in sectors such as automotive, consumer products, banking, capital markets, life sciences, telecom, media, high-tech, manufacturing and energy.
In India, 53% of business leaders said they were optimistic about their organisations outlook. Comparatively, globally, 56% of leaders are shifting towards optimism about their organisations’ future.
The survey found that in 2024, 82% of Indian business leaders plan to increase their investment in digital tools and technologies. Of these, 90% intend to invest more in AI and generative AI, 92% in cloud technologies, 73% in cybersecurity and 71% in digital twins and immersive technologies for industrial applications.
The surveyed Indian business leaders also plan to boost investments in customer experience (a 67% increase on 2023’s survey), engineering/R&D/product or service innovation (a 61% increase), talent and skills (a 53% increase), and sustainability (a 51% increase).
Half of the Indian leaders believe cybersecurity is a top risk to business growth, compared to 61% of business leaders globally.
Globally, business leaders anticipate AI playing a significant role in critical decision-making, with life sciences and healthcare leading. In India, 28 per cent of respondents expect AI to be used in critical decision-making in five years, while 17 per cent reported its current use in their organisations.
In terms of future possible disruptions, 37% of Indian business leaders and 48% of global leaders see climate change as the main cause. In India, 47% believe liquidity and financial health are at risk, and 33% feel brand reputation is more vulnerable.
