Sanjeev Krishan | Vivek Prasad
PwC

 

The February, 25 edition of The Hub brings you the 28^th Annual Global CEO Survey from PwC which emphasis two defining megatrends impacting Indian businesses: technological disruption, particularly AI, and climate change. The survey, which polled 4,701 CEOs globally, including 76 from India, underscores how these forces are reshaping business strategies.

 

Technological Disruption & AI Adoption
 

Indian CEOs identified technological disruption as their top concern, followed by macroeconomic volatility and inflation. Unlike their global counterparts, who prioritized macroeconomic factors and cybersecurity, Indian leaders see AI-driven transformation as both a challenge and an opportunity. Many have begun integrating AI and Generative AI (GenAI) into their operations, with reported productivity gains of over 50% and increased revenue over the past year.

 

Key AI-related findings include:
 

• 59% of India CEOs plan to integrate AI into their technology platforms, compared to 47% globally.
• 51% of India CEOs foresee AI’s large-scale integration into business processes and workflows.
• 36% of India CEOs reported AI-driven revenue increases, higher than global averages.

 

Despite these advancements, trust in AI remains a concern, with only a third of CEOs expressing strong confidence in AI’s role in business decision-making. To leverage AI effectively, businesses must ensure responsible AI deployment, ethical considerations, and proper workforce training.

 

Economic Growth & Market Expansion
 

Optimism about India’s economic trajectory remains strong, with 87% of India CEOs expecting economic growth, compared to 57% globally. The country’s robust GDP growth, averaging 8.3% over the past three years, and government initiatives such as Make in India and the Production-Linked Incentive (PLI) scheme have bolstered confidence.

 

Other economic insights include:
 

• 74% of Indian CEOs are confident in their companies' revenue growth over the next three years.
• 68% plan to increase headcount, indicating a strong job market despite AI-driven automation.
• India remains among the top five investment destinations for global CEOs, alongside the US, UK, Germany, and China.

 

Climate Change & Sustainability Investments
 

Indian businesses are increasingly integrating sustainability into their core operations. Over the past five years:
 

• 38% of India CEOs have seen increased revenue from climate-friendly investments.
• 58% link personal incentive compensation to sustainability metrics, slightly higher than the global average (56%).
• 20% accepted lower-than-usual returns on sustainability investments, showing a commitment to long-term environmental goals.
   

However, regulatory complexity and a lack of external demand remain barriers to sustainability investments. Nonetheless, sectors such as renewable energy and sustainable manufacturing continue to attract significant investment.

 

Reinvention Strategies & Industry Diversification
 

To navigate disruption, Indian CEOs are focusing on business model reinvention:
 

• 43% have prioritized product and service innovation.
• 39% have explored new market routes.
• 38% have targeted new customer bases.
   

Additionally, 40% of India CEOs reported expanding into new industries, with key areas of growth including consumer goods, industrial manufacturing, and aerospace. Many businesses are leveraging synergies across sectors to enhance competitive advantage.

 

Decision-Making & Future Outlook
 

With rising complexity, India CEOs are adopting more structured decision-making processes. 84% ensure transparency in strategic decisions, though only half actively consider contradictory data, highlighting room for improvement. Looking ahead, continued focus on AI adoption, sustainability, and strategic reinvention will be crucial for business longevity in India’s dynamic economic landscape.

 

(Note: IICA duly acknowledge the ownership / authorship of the survey report and republishing the same only for educational purpose of Independent Directors)