Davos, January 21: A new survey by PwC reveals that nearly 9 out of 10 CEOs in India remain confident in the country's economic growth, with a strong focus on expansion plans, including headcount increases and the continued rollout of Artificial Intelligence (AI) technologies.
As global leaders convene in Davos under the theme of "Collaboration in the Intelligent Age," PwC's 28th Annual Global CEO Survey - India Perspective highlights the significant role India is poised to play in driving global innovation, sustainability, and economic growth.
According to PwC, the survey, which polled over 4,700 CEOs across 109 countries, including 75 from India, shows that 87 per cent of Indian CEOs are optimistic about the country's economic prospects, far surpassing the global average of 57 per cent.
Additionally, 74 per cent of Indian CEOs express strong confidence in their companies' revenue growth over the next three years, buoyed by the country's economic resilience, improved ease of doing business (EoDB), infrastructure developments, and a young, skilled workforce.
Despite this optimism, the survey points to challenges that remain on the horizon. Technological disruption is the top concern for Indian CEOs, followed by macroeconomic volatility, inflation, and the availability of skilled labor. Disruptive technologies, including AI, were also identified as a major factor affecting economic viability for many companies in India.
Sanjeev Krishan, Chairperson, PwC in India, said, "For CEOs today, the challenge is to envision the ecosystem in which their company will operate in the future. This includes thinking through the impacts of megatrends like climate change and AI, evolving customer needs, shifting value pools, and the roles that their company will play."
AI, particularly Generative AI (GenAI), has emerged as a key area of focus for business leaders globally. In India, 51 per cent of CEOs are optimistic about GenAI's potential to enhance profitability, but trust remains a significant hurdle.
Only a third of Indian CEOs have high confidence in AI's seamless integration into business operations. Despite these reservations, the potential for AI to drive efficiency and growth is evident, with 68 per cent of India CEOs planning to increase their workforce, up from 57 per cent the previous year.
Krishan further elaborated, "India CEOs should embrace GenAI's potential while also taking steps to manage risks. Responsible AI practices can mitigate many issues and are most effective when baked into GenAI strategy from the start."
India is increasingly recognizing the importance of climate-conscious business strategies. More than one-third of Indian CEOs reported revenue growth from climate-friendly investments over the past five years, underscoring a shift in corporate priorities.
Additionally, over 60 per cent of these CEOs noted that such investments either reduced costs or had no significant cost impact.
Sustainability metrics also play a role in executive compensation, with 58 per cent of Indian CEOs stating that part of their personal incentives is linked to sustainability performance, slightly above the global average of 56 per cent.
This financial alignment with sustainability is a testament to the growing importance of climate-focused investments in driving long-term profitability.
While not all climate-friendly initiatives have resulted in direct revenue growth, the survey suggests that companies are increasingly embedding sustainability into their business models, not just as a stakeholder responsibility but as a driver of future investments and profitability.
As macroeconomic and geopolitical shifts continue to shape the global business landscape, the need for reinvention is more pressing than ever.
PwC's survey found that 40 per cent of CEOs in India and around the world have ventured into new sectors or industries over the past five years. This trend indicates that diversification is becoming a key strategy for growth.
For Indian CEOs, product and service innovation remains the most common reinvention action, with 40 per cent of CEOs focusing on developing new products and services, and targeting direct-to-consumer routes.
Additionally, 38 per cent of Indian CEOs have worked on acquiring new customer bases, while 26 per cent have sought collaborations with other organizations to foster growth.
