Despite rising geopolitical risks, Indian CEOs are more upbeat than their worldwide peers on their country’s economic prospects. However, a majority of them plan to decrease their operational expenses.
Interestingly, even as CEOs put a lot of emphasis on cost cuts, 85% of them did not plan to reduce headcount and 96% did not intend to decrease compensation – reflecting their resolve to retain talent. In this article, we will discuss about rajkotupdates.news : indian ceos expect economic growth.
Economic Growth
Amid a slew of headwinds such as high inflation, macroeconomic volatility and the ripple effects of the conflict in Europe, a majority of Indian CEOs remain positive about the economy. Around 57% of the CEOs believe that India will experience economic growth in the next 12 months. This is an increase of 5% from the optimism expressed at the end of 2021. The 26th annual Global CEO Survey conducted by PwC included 4,410 CEOs from 105 countries and territories, including 68 from India.
In addition to the aforementioned headwinds, the chief executives highlighted the impact of changing customer demand, climate change and geopolitical conflict on their businesses. While cost cutting remains at the forefront of their agendas, 85% of Indian CEOs do not plan to reduce their workforce or compensation, reflecting their resolve to retain talent.
According to the report, 62% of Indian CEOs believe that changes in customer demand will have a large or very large impact on their industry’s profitability in the next ten years. This is followed by 54% who are concerned about changing regulations and 31% who think their companies will be extremely/highly exposed to climate change.
Despite this, about four in ten (40 per cent of global and 41 per cent of Indian CEOs) say they do not expect their business models to be economically viable a decade from now if they continue on the current path. These CEOs are looking to reinvent their companies and introduce new products, services or business models that can help them survive in a rapidly changing world.
However, the survey finds that CEOs are also focusing on their core competencies and exploring opportunities to increase revenue in their core markets. They are also reshaping their organisational structures to improve agility and speed. In addition, a growing number of CEOs are incorporating disruptions into their scenario planning and corporate operating models by increasing investments in cybersecurity or data privacy. They are also redeploying capital in growth areas such as new products, services or markets. This shows a clear sign that they are willing to take calculated risks in order to achieve their growth ambitions.
Customer Demand
In an era in which the world’s most powerful CEOs have been largely male white men from Western countries, Indian-origin executives are making their mark with remarkable aplomb. From Indra Nooyi’s groundbreaking stint at PepsiCo to Sundar Pichai’s success at Google and the rise of Ajay Banga at Mastercard, Indian-born executives have made a big impact in America’s corporate landscape.
What all of them have in common, as evidenced by their stellar resumes, is a strong work ethic and a keen business acumen. Many have also benefited from a brutally competitive education system where the best and brightest study science, engineering or medicine. As a result, these leaders often have a sharp sense of market dynamics and the ability to spot lucrative opportunities.
Perhaps more importantly, Indian-origin CEOs are remarkably humble and empathetic people who believe in teamwork. They’re the kind of people who wouldn’t dream of lording over their subordinates, and they understand the value of creating a culture that’s open to ideas, diversity and inclusion.
Most of these CEOs hail from middle-class families and have parents who worked in government, civil service or the military. Their mothers were selfless homemakers who instilled values and discipline. This makes them highly competitive but also well aware of the value of a stable home life and the role that family plays in their career trajectory.
This is what sets them apart from arrogant company founders who believe that they deserve to have their way with employees and customers. It’s this humility that has helped these CEOs hone their skills and become effective leaders. They’ve also learned to appreciate the virtues of a secular, multicultural society that, despite its warts and inequities, seeks to be equitable for all. That’s a cultural trait that could very well serve them in their future roles as global CEOs. Whether they’re looking to build an enduring company or a tech startup, these CEOs are the kind of scions that any board would welcome. In a time of turbulence, they’re a breath of fresh air.
Competitiveness
Despite the challenges brought by the covid-19 pandemic and other economic and geopolitical headwinds, Indian CEOs remain upbeat about growth prospects. According to a report by PwC, 99% of Indian CEOs and 77% of global counterparts believe that business performance will improve over the next 12 months.
The survey of 4,400 CEOs from 105 countries and territories, including 68 from India, was conducted between October and November 2022. Among the key findings:
Indian CEOs are putting more focus on competitiveness, with 62% believing that changing customer demand will impact profitability in their industries in the next ten years to a large or very large extent. The second most common concern is disruption that will come from advanced technology such as metaverse, blockchain and AI. Other issues include shortage of talent and skills, changing regulations and supply chain disruptions.
To combat these issues, many CEOs are diversifying their product/service offerings and increasing automation or digitisation of processes. In addition, 59% are already reducing operating costs and 37% plan to do so in the near future. Moreover, more than 50% of the CEOs surveyed are raising their cybersecurity investments. These measures will help them stay ahead of the competition and protect their companies from hacks and other security threats.
CEOs are also refocusing their long-term strategy on non-financial outcomes, such as employee satisfaction, brand reputation, and environmental or social responsibility. 81% of Indian CEOs and 75% of global counterparts have included these metrics in their corporate strategies.
Lastly, 97% of Indian CEOs and 78% of their global counterparts have no plans to reduce compensation, which is an indicator of the strong desire to retain talented employees. This is particularly true in the technology sector, where 46% of Indian CEOs are looking to increase workforce size in the next ten years. CEOs are focusing on developing innovative products and services, and creating an environment that fosters creativity and innovation. They are also working towards becoming more sustainable and addressing climate change, while also ensuring that their businesses have the resources needed to survive in the long run.
Business Models
As India’s economy grows, it is creating a growing number of business leaders who are ready to take on top roles in global corporations. While many of these new CEOs are from India, they’re also bringing with them a global perspective and deep understanding of what it takes to be successful in today’s business environment.
In fact, it isn’t uncommon to see an Indian CEO at the helm of some of the world’s largest companies. For example, Indra Nooyi became the first Indian woman to lead a Fortune 500 company and was named CEO of PepsiCo in 2006. Since then, several other Indian executives have become CEOs of major brands, including Satya Nadella at Microsoft, Sundar Pichai at Google, and Neal Mohan at YouTube.
These CEOs are looking to grow their businesses even as they anticipate a global economic slowdown. According to a report by consulting giant PwC, nearly three-quarters of CEOs from India believe that global economic growth will decline over the next 12 months. This is the most pessimistic outlook for global growth in more than a decade.
The survey of 4,410 CEOs from 105 countries and territories, including 68 CEOs from India, was conducted between October and November 2022. In addition to their concerns about economic growth, CEOs from India were most worried about inflation, macroeconomic volatility, and geopolitical conflict.
Despite these challenges, the majority of CEOs in India are confident about their country’s future. In the survey, 57% of Indian CEOs expressed optimism about their country’s growth prospects, compared to 29% globally.
While many CEOs are cutting costs and reducing their workforce during this challenging time, Indian executives are focusing on investing in innovation and growing their businesses. The survey found that more than half of Indian CEOs plan to increase their spending on research and development and retaining talent. Furthermore, 93 percent of India CEOs did not plan to cut salaries, indicating their resolve to keep hiring employees despite the current economic challenges and uncertainty.
With a diversified pool of skills, Indians are ready to rise to the challenge and continue to make their mark in the corporate world. The next generation of entrepreneurs are also showing strong interest in STEM-related careers. In fact, the number of students pursuing degrees in STEM-related fields has increased in recent years, according to the National Science Foundation. To know more about rajkotupdates.news : indian ceos expect economic growth just follow us.
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