New Delhi: According to a recent survey, Indian chief executive officers (CEOs) are more optimistic about the economy than their international counterparts. While only 66% of Indian CEOs anticipate a recession next year, this percentage rises to 86% globally.
According to the KPMG 2022 India CEO Outlook, most CEOs across the world—nearly three out of five—believe the slowdown will be mild and brief.
Recession is something that 55% of Indian CEOs are prepared to deal with. However, they also anticipate a 10% drop in their earnings as a result. While it is only 71% globally, more CEOs in India (86%) are expecting a 10% earnings hit.
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Yezdi Nagporewala, CEO of KPMG in India, said, “CEOs surveyed in India appear confident in the resilience of their organization and appear to have made the most of the current environment brought by the technology, talent and promise of ESG. has prepared himself.
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According to the report, CEOs around the world are now better prepared than in 2019 or 2020 to deal with immediate difficulties while expecting growth in the long run.
According to the report, two out of every five CEOs are ready to reduce their margins and increase cost controls. Hiring freezes, supply chain diversification, and increased productivity are all strategies one in three CEOs are ready to use.
Notably, compared to 75% of global CEOs, only 30% of Indian CEOs intend to implement the hiring freeze in the next six months. When it comes to downsizing, the figures go up a bit: 75% of Indian CEOs plan to do so in the next six months, compared to 80% globally.
Additional risks mentioned in the report are pandemic fatigue, rising interest rates and inflation.
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The conflict between Russia and Ukraine, as well as the earlier COVID-19 pandemic, has highlighted the importance of geopolitical risk management. For example, businesses such as Tata Steel and Infosys severed ties with Russia earlier this year.
“The pandemic and recent developments in Europe have demonstrated how interconnected the whole world is. Geopolitical concerns are the biggest risk in my opinion. T. V. Narendran, CEO and MD, Tata Steel, stressed that “ I believe we all need to adapt and build. Flexible supply chain."
According to the report, more Indian CEOs than their international counterparts are currently focusing on organic growth, partnerships and geopolitical risk management for the next three years. While 78% of Indian CEOs focus on these three areas to meet their growth goals, the percentage drops to 68% for CEOs globally.
While most CEOs in India and around the world believe in the resilience of their businesses, more Indian CEOs have confidence in India's resilience than their own.
The report said that while only 75% of Indian CEOs believe in the resilience of their companies, 82% of Indian CEOs are confident about India.
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The situation is different for global CEOs, who have more confidence in their businesses than in their nations.
Overall, 82% of Indian CEOs and 73% of global CEOs are more optimistic about the world economy than their international counterparts.