A majority of Indian CEOs have indicated in a survey that they plan to cut down their operating costs amid rising geopolitical risks. At the same time though, they are optimistic about the country’s economic prospects. According to the annual Global CEOs survey released by Price Waterhouse Coopers (PwC), many companies don’t plan to trim their headcount or salaries.
The survey was released on the first day of the World Economic Forum (WEF) meeting, which began in Davos on Monday. It was conducted among 4,410 CEOs from 105 countries and territories, including 68 CEOs from India, between October and November 2022.
The survey further revealed that around four out of 10 CEO (40 per cent of global and 41 per cent of India respondents) don’t expect their companies to be economically viable in 10 years if they continue on their current path.
“In response to the current environment, 93 per cent of India 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 said.
Also 78 per cent of India CEOs, 73 per cent of global CEOs and 69 per cent of Asia Pacific CEOs feel that global economic growth will decline over the next one year.
On the brighter side though, the survey found that despite the bleak global economic scenario, 57 per cent or five out of 10 Indian corporates are optimistic about India’s economic growth in the next one year, despite the gloomy global outlook.
In sharp contrast, only 37 per cent of Asia Pacific CEOs and 29 per cent of global CEOs expect economic growth to improve in their countries or regions over the next 12 months.
Also 67 per cent of India CEOs said they are adjusting their supply chains due to fluid geopolitical scenario, while 59 per cent of them informed that they are diversifying products and services.
The survey also found that 50 per cent of Indian CEOs are increasing investments in cyber security and data privacy.