Amid rising geopolitical dangers, a overwhelming majority of Indian CEOs have indicated in a survey that they’re lowering or planning to chop working prices, at the same time as they’re extra upbeat than their world friends on their nation’s financial prospects.

However, a lot of the firms don’t plan to chop their headcount or salaries, discovered the annual Global CEO Survey launched by consultancy big PwC right here on the primary day of the World Economic Forum assembly on Monday (January 16).

The survey additionally discovered that about 4 in ten CEOs (40 per cent of world and 41 per cent of Indian respondents) don’t anticipate their firms to be economically viable in 10 years in the event that they proceed on their present path.

Indian CEOs optimistic

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About 78 per cent of Indian CEOs, 73 per cent of world CEOs, and 69 per cent of Asia Pacific CEOs consider that world financial development will decline over the subsequent 12 months. But the survey additionally indicated that regardless of the gloomy world outlook, Indian CEOs are hopeful in regards to the nation’s financial development. More than 5 in ten CEOs (57 per cent) categorical optimism about India’s financial system over the subsequent 12 months.

In comparability, solely 37 per cent of Asia Pacific CEOs and 29 per cent of world CEOs anticipate financial development to enhance of their international locations or areas over the subsequent 12 months.

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PwC additional stated geopolitical flashpoints have prompted CEOs to think about disruptions of their scheme of issues. Responding to a query on what actions, if any, their firm was contemplating for the subsequent 12 months due to the battle in Europe, 67 per cent of Indian CEOs stated they have been adjusting provide chains.

Besides, 59 per cent highlighted they have been diversifying services and products; 50 per cent emphasised they have been growing investments in cyber safety and information privateness, and 48 per cent talked about adjusting their presence in present markets and/or increasing into new markets.

“In response to the current environment, 93 per cent of Indian CEOs (as against 85 per cent of global CEOs and 81 per cent of Asia Pacific CEOs) say that they are reducing or planning to reduce operating costs,” the survey report stated.

The survey was carried out amongst 4,410 CEOs from 105 international locations and territories, together with 68 CEOs from India, between October and November 2022.

Key threats recognized

Key threats recognized by Indian CEOs within the subsequent 12 months included inflation, macroeconomic volatility, local weather change, and geopolitical battle. Nearly 60 per cent from India stated they have been presently innovating new, climate-friendly merchandise or processes.

Also learn: India’s growth slowing to 6.6%, will remain fastest rising economy: World Bank

Cost cuts are excessive on the precedence listing in all places, with about 93 per cent of Indian CEOs saying they’re chopping, have reduce, or are contemplating chopping working prices and spurring income development to mitigate financial challenges and volatility.

About 85 per cent, nonetheless, careworn they might not cut back the dimensions of their workforce, and 96 per cent said they didn’t plan to scale back compensation demonstrating their resolve to retain expertise.

India’s strong home demand

Despite proof of a worldwide financial slowdown, persevering with excessive inflation, and repercussions internationally of the battle in Europe, the prognosis for India’s financial development has largely been constructive.

According to the World Bank, whereas India’s financial system would possibly present decrease development in 2022-23 in comparison with that in 2021-22, it is going to stay one of many fastest-growing main economies on this planet due to its strong home demand.

The World Bank has additionally revised its 2022-23 GDP forecast for India upward to six.9 per cent from 6.5 per cent (in October 2022), whereas the Reserve Bank of India, in its newest report, lowered its projection marginally to six.8 per cent for the present fiscal, attributing the identical to a worldwide slowdown.

(With Agency inputs)