Amid rising geopolitical risks, a majority of Indian CEOs have indicated in a survey that they plan to cut or reduce operating costs, even as they rate their country’s economic prospects higher than their global peers. Excited.
However, most companies are not planning to cut their workforce or salaries, found the annual Global CEO Survey released by consultancy giant PwC on the first day of the World Economic Forum meeting on Monday.
The survey also found that four out of ten CEOs (40 per cent global and 41 per cent Indian respondents) do not expect their companies to be financially viable in 10 years if they continue on their current path.
In addition, nearly 78 percent of Indian CEOs, 73 percent of global CEOs and 69 percent of Asia Pacific CEOs believe that global economic growth will decline over the next 12 months. But the survey also indicated that despite the gloomy global outlook, India’s CEOs are optimistic about the country’s economic growth. Five out of ten CEOs (57 per cent) express optimism about India’s economy over the next 12 months.
In comparison, only 37 percent of Asia Pacific CEOs and 29 percent of global CEOs expect economic growth to improve in their countries or regions over the next 12 months.
PwC further said that geopolitical flashpoints have prompted CEOs to factor disruptions into their scheme of things. In response to a question on what actions their company is considering for the next 12 months due to the conflict in Europe, 67 per cent CEOs in India said they are adjusting supply chains.
Furthermore, 59 percent highlighted that they are diversifying into products and services; 50 percent stressed that they are increasing investments in cyber security and data privacy, and 48 percent talked about adjusting their presence in existing markets and/or expanding into new ones.
The survey report states, “In response to the current environment, 93 percent of India CEOs (compared to 85 percent of global CEOs and 81 percent of Asia Pacific CEOs) say they plan to reduce or minimize operating costs.” Have been.”
The survey was conducted between October and November 2022 among 4,410 CEOs from 105 countries and territories, including 68 CEOs from India.
Inflation, macroeconomic instability, climate change and geopolitical conflict are among the key threats identified by Indian CEOs over the next 12 months. Nearly 60 percent from India said they are currently innovating new, climate-friendly products or processes.
Cost-cutting is high on the priority list everywhere, with nearly 93 per cent of India’s CEOs saying they are cutting, cutting or considering cutting operating costs to mitigate economic challenges and volatility and are driving revenue growth.
However, nearly 85 percent insisted they would not reduce the size of their workforce, and 96 percent said they did not plan to reduce compensation — demonstrating their resolve to retain talent.
Despite evidence of a global economic slowdown, persistent high inflation and the impact of conflict in Europe around the world, India’s economic growth forecast has been largely positive.
According to the World Bank, while India’s economy may show lower growth in 2022-23 than in 2021-22, it will continue to be one of the world’s fastest growing major economies due to its strong domestic demand.
The World Bank has also revised its 2022-23 GDP forecast for India to 6.9 per cent from 6.5 per cent (in October 2022), while the Reserve Bank of India, in its latest report, has revised its projection for India Marginally reduced to 6.8 percent. The current financial year, equates to a global recession.
The text of this story is published from a wire agency feed without any modification.
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