The global economic climate is undoubtedly uncertain. The 26th Annual Global CEO Survey by PwC, which was conducted in the fourth quarter of 2022 involving 4,410 CEOs from 105 countries and territories, including 68 CEOs from India, sheds insight on the challenges that now confront business leaders.
They show that CEOs globally do not feel as optimistic about the future as they did in 2021. Approximately 78 percent of CEOs in India, compared to 73 percent of CEOs worldwide, foresee a slowdown in global economic growth over the next 12 months.
The survey responses from Indian CEOs revealed that the slowing growth of major economies, coupled with inflation, macroeconomic volatility, climate change, and geopolitical risks, is of serious concern to business executives operating in an interconnected world.
Inflation and macroeconomic instability are cited as the two main threats for the upcoming 12 months by over 35 percent and 28 percent, respectively, of CEOs in India. These concerns are shared by CEOs in Asia Pacific and throughout the world.
In an effort to reduce inflation, central banks throughout the world are hiking interest rates, but doing so is starting to affect consumer demand and drive up company costs. Food prices and energy supply have been badly influenced by the turmoil in Europe.
Long-term COVID-19 pandemic-related lockdowns and an increase in illnesses as a result of abruptly lifting restrictions have raised concerns about disrupted worldwide supply chains, hurting a variety of enterprises throughout the world.
Global and Indian CEOs anticipate that climate risk would affect their supply networks and cost structures during the following year.
Over the next five years, climate change will become a bigger issue for India's CEOs, with 31 percent stating that they believe their firms would be extremely or highly susceptible to it.
In order to achieve the nation's 2070 net zero target, firms located in India must confront both the negative socioeconomic effects of decarbonisation and its cost and technological challenges.
Approximately 72 percent of CEOs in India (compared to around 60 percent of CEOs globally) have or are adopting steps to lower their company's emissions. The same proportion of CEOs have invented or are developing environmentally-friendly goods and services.
CEOs now plan for delays in their plans because of geopolitical flashpoints. In response to a question about what steps, if any, their business is considering taking over the next 12 months in light of the conflict in Europe, 67 percent of Indian CEOs state that they are adjusting their supply chains, while 59 percent emphasise that they are diversifying their products and services.
Approximately 50 percent said that they are trying to increase their investments in cybersecurity and data privacy, and 48 percent mentioned changing their presence in their current markets and/or entering new ones because of the ongoing conflict in Europe.
Ninety three percent of CEOs in India (compared to 85 percent globally and 81 percent in Asia Pacific) said they are cutting or preparing to decrease operational expenses as a result of the present environment.
(Edited by : Shoma Bhattacharjee)
