Why Indian CEOs Are More Confident About Growth
Chief Executive Officers in India are more confident about the growth prospects of their business than global peers and a majority of them are looking at alliances to enter new markets, according to a PwC study. The study suggests that 62 percent Indian CEOs are very confident of their growth prospects in the short term which is 12 month – higher than their global peers and up from 49 percent last year.
The report states that optimism in India may be more than just the euphoria following a majority growth-oriented government being voted to power at the Centre. Experts also believe Indian CEOs are harnessing technology in order to create value in totally new ways, as they capitalize on demographic shifts to develop tomorrow’s workforce, and are understanding how to serve increasingly demanding and diverse consumers across the new landscape
According to the survey, 84 percent of Indian CEOs see more “opportunities” when it comes to growth. Moreover, 71 percent of CEOs are very confident of growth in the next three years.
“CEOs in India seem to be benefiting on both counts – developments within and outside the country. Our survey reflects this exuberance of CEOs about growth of their businesses as also of the economy,” PwC India Chairman Deepak Kapoor said.
According to the report, CEOs are ready to collaborate for access to new geographic markets, technologies and customers with 63 per cent planning to enter into new strategic alliances or joint ventures over the next year – the highest percentage since 2010.
Despite the confidence, there are several challenges as the study notes, the key concern for CEOs in India continues to be inadequate basic infrastructure, while global CEOs are more concerned about over-regulation, increasing tax burden, geo-political uncertainty and government response to fiscal deficit and debt burden.
The only threat common to both global as well as Indian CEOs is the unavailability of key skills, PwC said. An interesting point is that threat perception in China is much higher than in India across various parameters from increasing tax burden to pandemics to supply chain disruption.
Global CEOs rate India as the sixth most important place for their growth prospect, while for CEOs in India, important market is the US, followed by China, UK, Japan and Indonesia. Moreover, around 82 per cent of the CEOs surveyed in India said they have a strategy to promote diversity and inclusion as against the global 64 per cent, it added.
The priority for CEOs in India is different from their global counterparts, said PwC. While corporate governance, customer growth and retention strategies and management of data and data analytics remain common, global CEOs are more concerned with organisation structure and technology investments. CEOs in India know that the megatrends provide opportunity as well as challenge. They are therefore creating new capabilities to deal with them.
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