A majority 57% of India Inc chiefs remain optimistic about the country’s economic growth in the next 12 months even as 78% global CEOs predict a decline in global economic growth in 2023, as per PwC’s 26th Annual Global CEO Survey.

This is the most pessimistic outlook for global economic growth since PwC began asking the question in the survey 12 years ago, and is a significant shift from the positive outlooks of 2021 and 2022.

The survey, conducted between October and November 2022, polled 4,410 CEOs in 105 countries and territories, including 68 from India.

The study said only 37% of Asia Pacific CEOs and 29% of global CEOs expect economic growth to improve in their countries or regions over the next 12 months.

“Despite signs of a global economic slowdown, continuing high inflation, and the ripple effects of the conflict in Europe, there is optimism among India’s CEOs about the country’s economic growth,” said Sanjeev Krishan, chairperson of PwC in India.

“To survive over the next few years, CEOs will need to manage external risks and drive profitability. In the long term, they will also need to reimagine, reinvent and reconfigure their businesses and work cultures to thrive,” he said.

According to the survey, 41% of CEOs believe that if their organisations continue on their current path, they will not be economically sustainable in a decade.62% of Indian CEOs think that changes in customer demand will have a significant impact on profitability in their industry over the next ten years. Also, 54% of Indian CEOs worry about how changes in regulations will affect the profitability of their industry.

“If organisations are to remain viable in the near and long-term, they must also invest in their people and technological transformation agendas to empower their workforces,” Krishan said.

Almost 85% of India CEOs do not plan to reduce headcount, and 96% do not plan to reduce compensation in the next 12 months.

While cyber and health risks were the top concerns a year ago, the impact of the economic downturn is top of the mind for Indian CEOs this year, with inflation (35%), macroeconomic volatility (28%) and other risks weighing on CEOs’ minds in the short term and over the next five years. Climate change is close behind (24%), followed by financial exposure to geopolitical conflict risks (22%) and cyber risks (18%).

The conflict in Ukraine and growing concerns about geopolitical flashpoints in other parts of the world have caused Indian CEOs to rethink aspects of their business models, with almost half of the respondents that are exposed to geopolitical conflict integrating a wider range of disruptions into scenario planning and corporate operating models.