Chandigarh, 22 January 2025: As global leaders converge to discuss the theme of “Collaboration in the Intelligent Age” at the WEF meeting in Davos, PwC’s 28th Annual Global CEO Survey: India Perspective, released here today, underscores the pivotal role played by the country in shaping the future of global innovation, sustainability, and reinvention.

According to the survey, which polled more than 4,700 CEOs across 109 countries, of which more than 75 were from India, 87% of India CEOs are upbeat about the country’s economic growth, surpassing the global average of 57%, while 74% are very confident about their respective companies’ revenue growth in the next three years. From a macro perspective, India’s robust economic growth, improved ease of doing business (EoDB), infrastructural developments, and its young and skilled workforce continue to attract investors.

However, this confidence is tempered by certain challenges. Of these, technological disruption remains top of mind for India CEOs, followed by macroeconomic volatility and inflation, and low availability of skilled labour. Disruptive technology was also listed by India CEOs as one of the top two factors influencing their company’s low economic viability.

Sanjeev Krishan, Chairperson, PwC in India, said, “For CEOs today, the challenge is to envision the ecosystem in which their company will operate in the future. This includes thinking through the impacts of megatrends like climate change and AI, evolving customer needs, shifting value pools, and the roles that their company will play.”

Optimism around GenAI, but trust is a concern

Businesses across the world have witnessed efficiency gains and increased revenue with GenAI in the last 12 months. In India too, while 51% of India CEOs are positive about GenAI’s impact on profitability, trust remains an issue, with only a third of India CEOs having high trust in AI’s integration into business processes. Expectations for higher revenue growth are in turn prompting companies to increase hiring, with 68% of India CEOs planning to hire more staff, compared to 57% last year. Globally, 42% of CEOs will increase headcount in the next 12 months, and this is perhaps more on account of, rather than in spite of, AI.

“It’s clear from our survey that GenAI is not just a technological evolution but a strategic revolution, reshaping the landscape of global business. India CEOs should embrace GenAI’s potential while also taking steps to manage risks. Responsible AI practices can mitigate many issues and are most effective when baked into GenAI strategy from the start,” added Krishan.

The climate agenda

Back in 2019, few India CEOs were concerned about using data on the impact of climate change on business to make decisions around long-term success and durability of their businesses, nor did they consider climate change as a threat to their organisation’s growth prospects. The needle has moved considerably as organisations in India are now making investments to address climate change. The survey finds that more than one-third of India CEOs noted revenue increases from climate-friendly investments over the past five years. In addition, more than 60% said these investments had either reduced cost or had no significant cost impact.

More than half of global CEOs (56%) polled said their personal incentive compensation was linked to sustainability metrics. In India, the percentage of CEOs who said that a certain proportion of their personal incentive was determined by sustainability metrics was slightly higher at 58%. The higher the percentage of CEO compensation at stake, the higher is the revenue likely to be generated from climate-friendly investments.

Many companies, however, are yet to convert climate-friendly investments – which include transitioning to energy-efficient operations, developing greener products and services, and implementing emission-reducing technologies – into additional revenues. Be that as it may, sustainability is being increasingly built into the fabric of businesses across geographies, not only as a stakeholder management issue, but also as a vector of investment.

The reinvention imperative

The interplay between macroeconomic conditions, geopolitical reconfigurations, and other external and internal threats is poised to shape the future of business and society, and fuel intelligent reinvention for business viability in the decade to come. Our survey indicates that some CEOs have already commenced on this reinvention journey. Four in ten CEOs in India and across the world said their companies have started to compete in at least one new sector/industry in the last five years. Of these, 50% of India CEOs (as against 58% globally) stated that 1–20% of their revenue came from entering a new sector or industry in the last five years.

The most common reinvention actions taken by four in ten India CEOs over the last five years are developing innovative products and services and targeting new routes to markets – for example, selling directly to consumers rather than through intermediaries. Further, 38% of India’s CEOs, as against 32% globally, have aimed at acquiring a new customer base. Collaboration with other organisations has also been a strategy for 26% of CEOs both in India and globally.

On how staying the course on the reinvention track will be key to responsible business viability, Krishan concluded, “To drive transformation, business leaders must be willing to question deeply ingrained beliefs about their organisations’ business models, even when those beliefs were the foundation of past successes. This involves not only introspection within the organisation but also a keen focus on external dynamics, exploring how a rapidly evolving environment can unlock fresh opportunities.”