Indian Economy News

Amid Covid, India's billionaire count rose by 40 to 142 in 2021: Oxfam

Despite several hurdles, the majority of which are the result of the covid-19 pandemic, chief executives in India are very enthusiastic about the chances of a stronger economy in the future year.

According to the findings of PwC's 25th annual global CEO survey, 99% of Indian chief executives believe India's economic growth will improve over the next 12 months, while 94% are optimistic about global economic growth improving over the next 12 months, compared to 77% of global CEOs.

Between October and November, the survey interviewed 4,446 CEOs in 89 nations and territories, including 77 Indian CEOs. The CEOs are likewise upbeat about their companies' revenue prospects, with 98% of them optimistic about growth over the next 12 months. The poll also discovered that, while CEOs globally are at least as positive as they were last year about the chances for economic development in 2022, India CEOs' optimism stands out at 94%, up from 88% last year.

“While Omicron has cast a shadow and CEOs are focused on the health and safety of their employees at the moment, CEO confidence and optimism over the past one year is testimony to the resilience of Indian companies. Perhaps owing to the futuristic groundwork done during the difficult times, 97% of India CEOs are confident about their own company’s prospects for revenue growth not only in the near term but also over the next three years," Sanjeev Krishan, chairman, PwC in India said.

While there is reason to be optimistic, there are certain evident challenges to India's CEOs that must be addressed. Last year, 70% of India's CEOs saw the pandemic as the most serious threat to growth, while 62% saw cyber risks as a major hindrance to progress. This year, 15% of Indian CEOs are concerned about cyber dangers impeding their company's ability to raise finance. India's CEOs also agree that cyber risks might create significant revenue disruptions, with 64% of respondents concerned that a breach could impede product or service sales.

Aside from business disruptions, 47% of CEOs say cyber threats will hamper their ability to develop new products and services. Around 89% of Indian CEOs are concerned about health concerns, which is 9% higher than the global average. According to the poll, this could be an indicator that company executives would prefer to be cautious when it comes to making early investment and business decisions.

The ongoing threat of the mutating covid-19 virus is exacerbated by escalating geopolitical turmoil, which has caused global disruptions in commerce. "After a hard year, business executives are under pressure to generate top-line outcomes," Sanjeev added: “After a challenging year, business leaders are under pressure to deliver top-line results. It will require them to take proactive steps to mitigate current and future risks –be they around technology, cyber security, talent or health. Focusing on long-term challenges and issues around climate change and social inequality also becomes extremely crucial given the highly uncertain, volatile environment we are in and will define what sort of world we live in and hand down to the next generation."

Despite growing interest in ESG, both internationally and in India, strategy is still predominantly driven by commercial indicators. Most CEOs consider nonfinancial outcomes in their long-term strategy, such as customer pleasure, employee engagement, and automation or digitalisation. Targets connected to workforce gender representation and climate reduction and adaptation are underrepresented in strategy and compensation.

Customer satisfaction and staff engagement indicators are included in the long-term corporate strategy of approximately 81% and 75% of Indian CEOs, respectively, compared to 71% and 62% of global CEOs. Furthermore, 78% of Indian CEOs, compared to 54% of worldwide CEOs, include automation and digitization goals in their company's long-term corporate strategy. According to the report, 17% and 14% of Indian CEOs, compared to 11% and 13% of global CEOs, consider gender representation and greenhouse gas emissions in their company's annual bonus or long-term incentive plans, respectively.

Of the Indian organisations polled, 27% already have a net-zero commitment in place (22% globally), 40% are formulating and articulating their commitments (29% globally), and just 30% have made or are in the process of making no net-zero commitment (globally 44%).  Energy, utilities, and resources are the most represented sectors among those that have made net-zero promises. This supports the fact that high-emitting (and difficult-to-abate) industries are frequently at the forefront of climate action, putting them in the difficult but crucial role of problem-contributor and problem-solver.

“We have seen business leaders navigate the tide of uncertainty and lead the way to drive not only economic growth but also societal change, through the past 25 years of our Global CEO Survey. The role of business leaders as change makers will increasingly come to the fore, and leaders must ensure that their efforts create lasting value while also building trust with the communities and stakeholders they serve. Effective collaboration between all stakeholders – organisations, individuals and governments – can meaningfully enhance not only their own prospects but also the prosperity and vitality of society as a whole," Krishan concluded.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.