- Two out of three
Indian CEOsexpect a recessionover the next 12 months, according to a new report.
- The report adds that CEOs are now better prepared for near-term challenges than they were in 2019 or 2020.
- Despite this, more Indian CEOs are confident in the resilience of
Indiathan their own companies.
Indian chief executive officers (CEOs) are more optimistic about the economy than their global counterparts, according to a new survey. While 66% of Indian CEOs expect a recession in the 12 months, the number is rising globally to 86%.
According to the KPMG 2022 India CEO Outlook, nearly three in five CEOs around the world think the recession will be mild and short.
More than half of Indian CEOs – at 55% – have plans to cope with a recession. However, they also expect it to take a 10% hit on their earnings. More CEOs in India expect a gain of 10% at 86%, while globally it is 71%.
“CEOs in India who were surveyed seem confident in the resilience of their organization, but they also appear to be prepared to make the most of the current environment, thanks to the promise of technology, talent and ESG,” said Yezdi Nagporewalla, CEO of KPMG in India. .
CEOs Are Better Prepared for a Recession – Here’s How
According to the report, CEOs around the world are now better prepared compared to 2019 or 2020 when it comes to weathering short-term challenges, while still expecting longer-term growth.
According to the report, 2 in 5 CEOs are willing to reduce their margins and improve cost management. One in three CEOs is willing to increase productivity, diversify their supply chains and
Specifically, 70% of Indian CEOs plan to implement a hiring freeze in the next six months, compared to 75% of global CEOs. The numbers are slightly up when it comes to downsizing – 75% Indian CEOs plan to do so in the next six months, versus 80% globally.
Other risks outlined in the report include pandemic fatigue, rising interest rates and inflation.
More Indian CEOs focus on organic growth, partnerships and geopolitical risk management
The war between Russia and Ukraine and the Covid-19 pandemic before that have underlined the importance of geopolitical risk management. Companies like
“The pandemic and the events in Europe have shown us how interconnected we are as a world. For me, geopolitical issues are risk number one. I think we all need to build optimized and resilient supply chains,” said
According to the report, more Indian CEOs are now focusing on organic growth, partnerships and geopolitical risk management for the next three years, compared to their global peers. While 78% of Indian CEOs focus on these three areas to achieve their growth targets, the number drops to 68% for global CEOs.
Indian CEOs are more confident in the country’s resilience than their company
While a majority of Indian and global CEOs are confident in the resilience of their companies, more Indian CEOs are confident in India’s resilience than their own companies.
According to the report, 82% of Indian CEOs trust India while only 75% trust the resilience of their own company.
The scenario is reversed in the case of global CEOs who trust their companies more than countries.
In general, Indian CEOs are more optimistic about the global economy than their global counterparts – the numbers stand at 82% for Indian CEOs and 73% for global CEOs.
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