About 93% Of Indian CEOs Plan To Decrease Operating Expenses, No Reduction In Jobs: Survey

Amid mounting geopolitical threats, an extensive majority of Indian chief executive officers (CEOs) have exhibited in a survey that they are decreasing or aiming to decrease operational expenses while being more optimistic about their country's economic prospects than their worldwide peers.

However, most firms do not intend to reduce personnel or pay, as per the annual Global CEO Survey issued by consultancy giant PwC on the first day of the World Economic Forum gathering.

Findings Of The Survey

According to the survey, around four out of ten CEOs (41 per cent of Indian and 40 per cent of global respondents) do not anticipate their firms to be commercially sustainable in ten years if they continue on their current course.

Furthermore, almost 78 per cent of Indian CEOs, 73 per cent of worldwide CEOs, and 69 per cent of Asia Pacific CEOs predict that global economic growth will slow during the next 12 months. According to the study, India's CEOs are optimistic about the country's economic progress despite the bleak global picture. More than five out of ten CEOs (57 per cent) are optimistic about India's economy over the next 12 months.

Comparatively, just 37 per cent of CEOs in Asia Pacific and 29 per cent of CEOs globally predict that their nations' or regions' economic development will increase during the next 12 months, reported NDTV.

According to PwC, geopolitical flashpoints have forced CEOs to account for interruptions in their plans. When asked what steps, if any, their business is taking for the upcoming year due to the war in Europe, 67 per cent of India's CEOs responded that they are altering supply chains. Furthermore, 59 per cent stated that they are diversifying their products and services; 50 per cent said that they are raising investments in cyber security and data protection; and 48 per cent noted that they are modifying their position in present markets and/or expanding into new areas.

What Is The Plan Ahead?

According to the study report, 93 per cent of Indian CEOs, compared to 85 per cent of worldwide CEOs and 81 per cent of Asia Pacific CEOs, claim that they are cutting or preparing to decrease operational expenses in reaction to the present situation. The survey was performed between October and November 2022 among 4,410 CEOs from 105 countries and territories, including 68 CEOs from India. Furthermore, inflation, macroeconomic volatility, climate change, and geopolitical war were among the critical risks cited by Indian CEOs for the next 12 months. Nearly 60 per cent of Indian respondents stated they are presently developing new, environmentally friendly goods or methods.

Everywhere, reducing operating costs and boosting revenue growth are top priorities. In India, 93 per cent of CEOs report that they are now decreasing, have already lowered, or are planning to reduce operational expenses in order to lessen volatility and economic issues. However, around 85 per cent responded that they would not cut the size of their employees, and 96 per cent stated that they do not intend to lower salaries, proving their determination to retain talent.

India's economic development outlook has been generally good, despite signs of a global downturn, persistently high prices, and effects of the conflict in Europe throughout the world.

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