According to the findings of PwC’s 25th Annual Global CEO Survey, 99% of Managing Directors in India believe India’s economic growth will improve over the next 12 months, with 94% optimistic about the improvement of global economic growth over the next 12 months, compared to 77% % of global CEOs.
The survey interviewed 4,446 CEOs in 89 countries and territories between October and November, including 77 Indian CEOs.
CEOs also remain optimistic about their own companies’ revenue prospects, with a large majority of 98% confident of growth over the next 12 months.
The survey also found that while for the most part CEOs around the world are at least as optimistic as they were last year about the outlook for economic growth in 2022, the optimism of Indian CEOs – up from 88% last year. last – stands out at 94% .
“While Omicron has cast a shadow and CEOs are currently focused on the health and safety of their employees, the confidence and optimism of CEOs over the past year speaks to the resilience of Indian businesses. Being due to the futuristic groundwork done during tough times, 97% of Indian CEOs are confident about their own company’s revenue growth prospects, not only in the short term, but also over the next three years,” said said Sanjeev Krishan, president of PwC in India. noted.
Although there is optimism, concerns about some clear threats to Indian CEOs persist. Last year, 70% of Indian CEOs viewed the pandemic as a major threat to growth, while 62% viewed cyber threats as a barrier to growth. This year, 15% of CEOs in India fear that cyber risks will hamper their company’s ability to raise capital. Indian CEOs also agree that cyber risks could cause serious disruption to revenue, with 64% of respondents fearing that a breach could hamper sales of products or services.
In addition to business interruptions, 47% of business leaders believe that cyber threats could impede their ability to develop products and services.
Around 89% of Indian CEOs are concerned about health risks, 9% more than their global counterparts. This may be an indication that business leaders want to err on the side of caution when it comes to making early investment and business decisions, despite vaccination campaigns around the world, the survey finds. .
Adding to the ongoing challenge of the mutating covid-19 virus is the growing geopolitical conflict that has led to global trade disruptions. Sanjeev added, “After a tough year, business leaders are under pressure to deliver top-notch results. This will require them to take proactive steps to mitigate current and future risks, whether they relate to technology, cybersecurity, talent or health. Focusing on long-term challenges and issues related to climate change and social inequalities also becomes extremely crucial given the highly uncertain and volatile environment we find ourselves in and will define the kind of world we live in and transmit to the next generation. »
Despite the growing interest in ESG, the strategy remains primarily focused on business metrics, both globally and in India. Most CEOs have goals related to non-financial outcomes such as customer satisfaction, employee engagement, and automation or digitization included in their long-term strategy. Less well represented, in strategies and compensation, are goals related to gender representation in the workforce and climate change mitigation and adaptation.
About 81% and 75% of Indian CEOs, compared to 71% and 62% of global CEOs, include customer satisfaction and employee engagement metrics respectively in their company’s long-term corporate strategy. Additionally, 78% of Indian CEOs, compared to 54% of global CEOs, include automation and digitalization goals in their company’s long-term business strategy.
17% and 14% of Indian CEOs, compared to 11% and 13% of global CEOs, consider gender representation and greenhouse gas emissions, respectively, in annual bonuses or long-term incentive plans. their business, according to the survey.
Of the Indian companies that participated in the survey, 27% have already implemented a net zero commitment (22% globally), 40% are in the process of developing and articulating their commitments (29% globally ), and only 30% have not made or are making a net zero commitment (44% overall).
At the sector level, energy, utilities and resources are the most represented among those who have made net zero commitments. This reinforces that high-emitting (and hard-to-mitigate) industries are often front and center when it comes to climate action, placing them in the complex but critical role of contributor and problem-solver.
“We’ve seen business leaders navigate the tide of uncertainty and lead the way to drive not just economic growth but also societal change, over the past 25 years of our Global CEO Survey. The Role of CEOs business leaders as agents of change will be increasingly showcased, and leaders must ensure that their efforts create lasting value while building trust with the communities and stakeholders they serve Effective collaboration between all stakeholders – organizations, individuals and governments – can significantly improve not only their own prospects, but also the prosperity and vitality of society as a whole,” Krishan concluded.
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