A recent survey by PwC reveals that most Indian CEOs remain confident about the country’s economic growth and are actively integrating artificial intelligence (AI) into their businesses. The 28th Annual Global CEO Survey: India Perspective, released during the World Economic Forum in Davos, shows that 87% of Indian CEOs are optimistic about India’s economic prospects, significantly higher than the global average of 57%. Additionally, 74% of Indian CEOs expect their companies’ revenues to grow over the next three years.
This confidence stems from India’s strong economic fundamentals, including a young and skilled workforce, infrastructure development, and improvements in the ease of doing business. However, challenges such as technological disruption, inflation, macroeconomic volatility, and a shortage of skilled workers remain key concerns for business leaders.
Sanjeev Krishan, Chairperson of PwC in India, emphasized that CEOs must adapt to a rapidly changing environment. He pointed to emerging trends like climate change, AI advancements, evolving customer expectations, and shifting market dynamics as critical areas requiring attention.
AI Integration and Workforce Expansion
While 51% of Indian CEOs believe Generative AI (GenAI) can enhance profitability, only a third express high confidence in its seamless integration into business operations. Despite this cautious approach, Indian CEOs are optimistic about expanding their workforce. The survey found that 68% plan to hire more employees in the coming year, up from 57% last year.
Krishan described GenAI as a strategic revolution rather than just a technological advancement. He urged CEOs to embrace its potential while addressing risks through responsible AI practices. This balanced approach, he noted, can help mitigate concerns and unlock significant benefits.
Sustainability Gains Traction
Sustainability is becoming a priority for Indian CEOs, with many linking it to business growth. Over a third of CEOs reported revenue growth from climate-conscious investments in the past five years, while more than 60% said these initiatives either reduced costs or had no significant financial impact. Additionally, 58% of Indian CEOs revealed that a portion of their personal incentive compensation is tied to sustainability metrics, slightly above the global average of 56%.
Despite these efforts, many companies are still working to convert climate-friendly investments into substantial revenue streams. Sustainability is increasingly seen as a core business strategy, driven not only by stakeholder demands but also by its potential to create long-term value.
Business Reinvention on the Rise
The survey also highlighted a growing trend of business reinvention. Globally and in India, 40% of CEOs said their companies have entered new industries in the last five years. In India, 50% of CEOs reported that 1-20% of their revenue now comes from these new ventures. Common strategies for reinvention include launching innovative products, targeting new customer segments, and adopting direct-to-consumer sales models.
Conclusion
Indian CEOs remain bullish about the country’s economic growth, with plans to expand their workforce and integrate AI technologies. However, they are also mindful of challenges like technological disruption and climate change. By focusing on sustainability, responsible AI adoption, and business reinvention, Indian CEOs are positioning their companies for long-term success in a rapidly evolving global economy.
