84 per cent of Indian business leaders are optimistic about growth in 2023 despite the global recession - A survey with business leaders by Benori Knowledge
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espite the global recession, India is emerging as a beacon of hope, according to a CXO survey by a new-age provider of custom research and analytics solutions. Indian CXOs are overwhelmingly confident about the state of the national economy in 2023.
Industry leaders optimistic of growth in 2023 with automotive and industrial manufacturing and pharmaceuticals sectors being the most optimistic
84 per cent of CXOs confirm their optimism towards growth with leaders from the automotive and industrial manufacturing (77 per cent) and pharmaceuticals (85 per cent) industries being the most hopeful. This aligns with the growth the automotive and manufacturing industry has experienced in 2022, driven by multiple factors like increasing FDI inflow (), EV growth, lower labour costs and improving infrastructure and government initiatives, among others. Increasing interest from foreign entities to outsource the production of medication in India has the pharma industry poised to achieve significant growth going forward.
A focus on digital transformation, talent management and ESG to define the playbook for India Inc. in 2023
Leaders from India Inc. say that despite the impending global recession, they intend to scale their digital transformation budgets in the upcoming year, with 42 per cent of leaders highlighting the integration of emerging technologies as one of the major themes for 2023.
Regarding talent management, finding the right talent represents the biggest challenge (62 per cent) and leaders expect skill gaps in the workforce to widen in 2023. Moonlighting, which has recently been highlighted as a concern for remote and hybrid businesses, was only seen as a worrying phenomenon by 20 per cent of leaders.
Business leaders perceive ESG integration in the company business operations to become a core strategy to deliver long-term value. Notably, ~65 per cent of leaders cite integration of ESG will impact their financial performance.
Almost all organisations plan to increase their digital spending in 2023; ~43 per cent plan to increase their spending by more than 20 per cent
Digital transformation spends will continue to increase as companies recognise the importance of investing in emerging technologies to remain competitive. However, 50 per cent of the business leaders say they will need to solve challenges such as measuring ROI, securing stakeholder buy-in, along with finding expert tech talent for new tech integrations.
The leading technologies that attracted the most investments in 2022 were cloud computing, where almost 80 per cent of companies report either advancing the level of implementation or having fully leveraged the potential of the technology within the organisation.
After cloud computing, AI and Machine Learning (61 per cent) are well-established technologies within most Indian companies. The technology and telecommunication sector has the highest adoption (92 per cent) of cloud computing and AI/ML (42 per cent) in its practices.
Lack of employees with niche skills the most challenging aspect of talent management
More than 60 per cent of business leaders cite skill gaps as a major challenge for the upcoming year. To address the challenge of acquiring talent with the relevant skills, leaders intend to focus on upskilling and reskilling (79 per cent) initiatives to increase the capabilities of their existing workforce. Close to 50 per cent of all CXOs report a high attrition rate, keeping employees engaged, and managing hybrid/remote models as other challenges related to talent.
Investors and shareholders providing the most pressure to deliver ESG strategies
Going forward, CXOs are prioritising ESG in business strategy. 65 per cent of the leaders of India Inc. report financial performance as a key motivator to the integration of ESG, with around a third of respondents citing investors and shareholders as the primary drivers of implementing it within their organisations.
More than 60 per cent of CXOs say they are highly confident about their organisations' capabilities in complying with the Indian government's business responsibility and sustainability (BRS) reporting framework. 74 per cent of large companies (revenues above Rs 3,000 crore) report being completely ready to comply with the BRS framework. Initiatives to improve energy efficiency emerges as the most popular (77 per cent) sustainability practice, followed by improvements in waste management (64 per cent) and reduction of carbon footprint (53 per cent).
However, 65 per cent say that difficulties with actually tracking and measuring the impact of ESG posed the biggest challenge to implementing an ESG strategy. A limited talent pool with knowledge in the areas of ESG/sustainability which is not growing at the same rate as the industry demand, is hampering the successful measurement and deployment of an ESG framework.
Geopolitical conflict and climate change pose the least risk to the growth of the Indian economy
Although optimism is at high, the country's business community is not completely resistant to the threats faced by their global counterparts. Talent acquisition and retention (52 per cent) was ranked as the top risk factor followed by supply chain bottlenecks (48 per cent), followed by technology disruption and cyber risks (41 per cent).
Interestingly, on the subject of global conflict and environmental crises, the leaders of India Inc. cited geopolitical turmoil (6.8 per cent) and climate change (3.4 per cent) as posing the least risk to their businesses and do not affect growth plans.
Key strategies for managing risk and improving performance
According to the Benori survey, to mitigate these risk factors, the leaders of India Inc. view strategic alliances (26 per cent), geographical expansion (26 per cent) and investment in new businesses as the most critical strategies to build endurance for times of uncertainty. To drive growth over in 2023, leaders look at leveraging digital technologies, focusing on customer centricity, adopting strategies for shifting talent models/the future of work and building supply chain resiliency.
Ashish Gupta, Co-Founder and CEO, Benori Knowledge, said, "Though global economic growth is currently experiencing a decline, India and other emerging economies are poised to remain resilient in the face of macroeconomic pressures. The economic uncertainty, combined with evolving customer needs, has led enterprises to double down on their efforts -- with a renewed focus on operational efficiency, productivity, and resilience, generating a positive sentiment in India Inc. This optimistic outlook is further driven by the advancement of digital infrastructure, offshore investments in manufacturing, as well as the country's target to meet 50 per cent of its energy requirements via renewable sources by 2030. "
Methodology
Benori conducted interviews with 150 business leaders of medium and large enterprises across industries to compile these findings.
About Benori KnowledgeBenori Knowledge is a global provider of custom research and analytics solutions across industries, including consumer and retail, technology, media and telecom, internet and e-commerce, professional services, financial services, healthcare, industrials and education and social. They offer solutions aimed at supporting their clients' strategic needs that are critical to accelerate their growth and value creation. Powered by technology, Benori delivers significant insights to solve challenging business questions and simplify decision-making for key stakeholders in their clients' business.
Benori is committed to minimising the challenges faced due to high costs, poor access and low quality of knowledge processes, and transforming them to deliver best-in-class actionable insights. Headquartered in India, Benori serves clients across the world, and works for top consulting and investment firms, as well as a variety of organisations across industry segments such as Fortune 500 companies, SMEs, and high-growth startups.
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✔️ 84 per cent of Indian business leaders are optimistic about growth in 2023 despite the global recession - A survey with business leaders by Benori Knowledge
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