Over 70% of Indian CEOs are concerned about growth amid emerging challenges: KPMG report

Mumbai: Seven in 10 Indian CEOs expect significant challenges to hamper business growth over the next three years, according to the KPMG 2024 India CEO Outlook survey of 125 corporate leaders from across India. Their main concerns include rising costs of living, complex trade regulations, cybersecurity threats and talent shortages.

As Indian CEOs face a new set of internal challenges and external threats such as geopolitical tensions and political instability, operational difficulties have become a major concern.

A good 16% of Indian CEOs, up from 10% in 2023 and 14% globally, consider operational issues to be the biggest threat to their organization’s growth. This is attributed to the constant emergence of disruptive technologies that make it difficult for CEOs to keep pace.

Additionally, reputational risk, including misalignment with customer and public sentiment, has emerged as a top concern for Indian CEOs, alongside cybersecurity threats, emerging technologies and climate change. As the report highlights, these changing priorities reflect an evolving risk landscape requiring CEO attention and strategic response.

AI Race

“From the race towards artificial intelligence (AI) to geopolitical uncertainty, the challenges facing CEOs in India over the last few years are enormous and complex. In addition to these external pressures, internal challenges such as workforce upskilling and hybrid working are forcing CEOs in India to manage their stakeholders with agility and flexibility while keeping an eye on medium-term growth,” Yezdi Nagporewalla, CEO, KPMG India, wrote in message.

“Looking ahead, CEOs in India who have the confidence to adapt to a rapidly changing world and invest in the right technology and talent are poised to deliver sustainable, long-term growth,” he added.

Indian CEO confidence in the global economy’s growth prospects over the next three years also increased significantly to 80% in 2024 from 69% in 2023, reflecting optimism and determination to pursue long-term growth trajectories.

The study also found that 93% of CEOs in India, compared to 92% globally, expect the number of employees in their organizations to increase in the next three years.