Indian CEOs more confident than global peers on GDP, revenue growth: PwC survey

Davos: Amidst a subdued global outlook, Indian CEOs are a lot more optimistic than their global peers on growth of their economy as well as their company revenues, a new survey showed here.

Also, India has moved to the second place after the US among global CEOs as a potential destination, up from fifth last year, as per the annual PwC CEOs survey released during the World Economic Forum Annual Meeting.

It said just over half of global CEOs are expecting growth, but India stands out as an exception.

The survey found that striking 77 per cent of India CEOs anticipate stronger domestic growth, and 57 per cent express high confidence in near-term revenue growth, nearly double the number of their global peers.

In a world defined by uncertainty, India's ascent on the global investment map also stood out.

PwC said India is now among the top investment destinations. While 46 per cent of global CEOs are not planning any investments, of those planning to invest beyond borders, 35 per cent would like to invest in the US, while 13 per cent each said they would like to invest in India, Germany, and the UK.

Last year, India was in the fifth spot along with France on the list of territories global CEOs would like to invest in.

For India CEOs, the leading investment destinations are the US, UAE and the UK, a trend reinforced by trade agreements such as the Comprehensive Economic Partnership Agreement (CEPA) with UAE and the Comprehensive Economic and Trade Agreement (CETA) with the UK.

Global CEOs identified macroeconomic volatility, cyber risks and inflation as the most significant threats over the next 12 months.

For Indian CEOs, the top risks are macroeconomic volatility, cyber risks and tech disruptions and availability of key skills.

With cyberattacks escalating in scale and sophistication, cybersecurity has overtaken inflation to become the second-most critical risk for both global and India CEOs.

The survey found that 66 per cent of Indian CEOs are more concerned about keeping pace with tech and AI, compared to 42 per cent globally.

Moreover, while 54 per cent of global CEOs apply AI for demand generation to a moderate or large extent, 37 per cent of Indian CEOs say they do so.

Additionally, 36 per cent of Indian CEOs (versus 52 per cent globally) reported using AI in products, services, and experiences to at least a moderate extent.

However, among Indian CEOs who have applied AI to business functions to at least a moderate extent, 32 per cent said AI has boosted their revenues.

The annual global CEO survey, based on insights from 4,454 respondents including nearly 50 from India, showed Indian CEOs are increasingly cautious amidst mounting global risks and persistent macroeconomic volatility.

"This caution persists even as India strives to be self-reliant (Atmanirbhar), underscoring the need for decisive leadership to turn aspiration into action," PwC said.

Striking the right balance between bold, innovation-led actions and steady resilience is no easy feat. But India CEOs remain upbeat as they navigate the road ahead, buoyed by confidence in the nation's growth and their own companies' revenue prospects, which clearly outshine those of their global peers," it added.

It also said that nearly six in ten Indian CEOs are competing in new sectors, as against four in ten globally.