India has maintained its position as one of the top five global investment destinations, alongside the US, UK, Germany, and China, according to PwC’s 28th Annual Global CEO Survey: India Perspective. The survey, which polled over 4,700 CEOs across 109 countries, highlights strong optimism among Indian CEOs regarding economic growth and future business prospects.
CEOs Confident About India’s Economic Growth
Nearly 87% of Indian CEOs expressed confidence about the country’s economic growth over the next 12 months, significantly higher than the global average of 57%. This optimism is driven by factors including India’s robust economic expansion, infrastructural developments, and a young, skilled workforce.
“Sustainability, technological advancements, and India’s growing business-friendly environment are key drivers behind this optimism,” said Sanjeev Krishan, Chairperson of PwC India.
Generative AI Seen as Profit Driver, but Trust Concerns Remain
Generative AI (GenAI) is a key area of focus for Indian businesses. 51% of Indian CEOs believe GenAI will positively impact profitability, with many anticipating efficiency gains and revenue growth. However, trust in AI remains a concern, with only one-third of CEOs expressing high confidence in its integration into business processes.
“The rapid evolution of GenAI presents enormous opportunities, but businesses must ensure its integration is handled responsibly,” Krishan added.
Climate-Friendly Investments Yield Revenue GrowthA significant trend highlighted by the survey is the growing emphasis on climate-friendly investments. One-third of Indian CEOs reported revenue increases from sustainability initiatives over the past five years. Furthermore, more than 60% noted that such investments either reduced costs or had no significant cost impact.
“Climate-conscious investments are no longer just about sustainability but also about long-term business viability,” said Krishan.
Hiring Plans Remain Strong Amid Optimism
Despite global economic uncertainties, 68% of Indian CEOs plan to increase headcount over the next year, up from 57% last year. This reflects strong expectations for continued revenue growth and the ongoing rollout of AI technologies.
“This is a clear indication that Indian businesses are poised for expansion, leveraging technology to fuel growth,” Krishan said.
CEOs Look to Diversify into New Sectors
In a bid to stay competitive, more than 40% of Indian CEOs have ventured into at least one new sector or industry in the past five years. Product and service innovation has been the most common strategy for reinvention, followed by targeting new customer bases and exploring direct-to-consumer models.
“Reinvention through innovation is essential for survival in an increasingly volatile global market,” Krishan added.
Challenges Persist for Indian CEOs
Despite overall optimism, Indian CEOs continue to face challenges, particularly around technological disruption, macroeconomic volatility, and a shortage of skilled labor. These issues are cited as significant barriers to long-term business success.
“While India offers tremendous growth potential, companies must navigate challenges such as disruptive technology and labour shortages to sustain growth,” Krishan said.
A Mixed but Optimistic Outlook
India’s business environment continues to attract investment, with CEOs confident in the country’s growth trajectory. However, balancing the adoption of new technologies like GenAI with responsible business practices and managing risks such as economic volatility will be crucial for long-term success.
“The future will demand that Indian businesses not only adopt new technologies but also rethink their business models in light of evolving global trends,” concluded Krishan.
