80% of Indian CEOs Are Optimistic for Global Growth; 68% Cautious on Company Prospects: KPMG Report In 2024, 68 per cent of Indian CEOs expressed confidence in their company's prospects, down from 71 per cent the previous year.

In today's evolving landscape, rapid technological advancements and geopolitical uncertainties continue to shape our reality and amongst these challenges India faces a critical mandate to drive innovation and secure sustainable growth. The KPMG 2024 India CEO Outlook survey paints a compelling picture of the current business environment and strategic priorities of Indian CEOs. The survey reveals a mixed bag of renewed optimism, tempered by caution, as executives navigate an evolving landscape shaped by global economic recovery, technological disruption and geopolitical complexities.

One of the more notable insights from the survey is the surge in confidence among Indian CEOs about the global economy. The confidence level has jumped from 69 per cent in 2023 to 80 per cent in 2024, marking a significant boost in optimism for long-term growth prospects. However, despite this uptick in optimism for the global economy, confidence in their own company's growth has dipped slightly. In 2024, 68 per cent of Indian CEOs expressed confidence in their company's prospects, down from 71 per cent the previous year. This decline, while moderate, mirrors a similar global trend, where confidence levels fell from 77 per cent to 76 per cent. The slight decline signals that CEOs remain vigilant of potential risks that could hinder their individual corporate growth journeys, even as the broader economic outlook improves.

While external threats such as geopolitical tensions and political instability are seen to be receding, Indian CEOs are now confronted with a fresh set of internal challenges. A significant 16 per cent of CEOs in India, up from 10 per cent in 2023, have identified operational issues, driven by the rapid emergence of disruptive technologies, as the greatest threat to their organizations' growth. Globally, 14 per cent of CEOs share the same concern.

Operational risks are now accompanied by reputational threats. Misalignment with customer and public sentiment is emerging as a key risk area, alongside cybersecurity and environmental concerns. Indian CEOs are keenly aware of the growing importance of public trust and are increasingly focused on how their actions, both operationally and ethically, resonate with stakeholders.

Yezdi Nagporewalla, chief executive officer, KPMG India, stated, "CEOs are aware of the threats posed by emerging technologies, cybersecurity risks and environmental changes. However, their outlook remains optimistic, with 22 per cent prioritizing mergers and acquisitions alongside organic growth as key strategies for the future. This commitment to innovation extends to generative AI, where an impressive 70 per cent CEOs in India are increasing their investments, significantly more than their global counterparts. This focus reflects a determination to enhance operational efficiency and profitability, even as challenges like regulatory hurdles and skill shortages persist."

As Yezdi revealed, despite the challenges, Indian CEOs maintain a robust appetite for mergers and acquisitions (M&A) as a key avenue for growth. As per the survey, 46 per cent of Indian CEOs expressed a high appetite for M&As, slightly lower than last year's 48 per cent but still above the global average of 45 per cent. Meanwhile, 22 per cent of Indian CEOs identified M&A strategies as the most crucial element for achieving their organization's growth objectives over the next three years.

Although the M&A landscape may be cautious, with 37 per cent of Indian CEOs showing a moderate appetite for deals and 18 per cent unlikely to pursue acquisitions, there remains a solid belief in the value of strategic partnerships. For many CEOs, M&A remains a vital tool for expanding market reach, acquiring talent, and integrating new technologies to fuel long-term growth. These combined efforts underscore the resilience of Indian businesses, which, despite external challenges, remain poised to pursue sustainable growth over the next three years.