Indian CEOs most optimistic amidst global gloom; hiring to boom this year

Says annual PwC survey of 1,379 CEOs across 79 countries

Amidst existential questions over the impact of globalisation and concerns around the rising trend of protectionism, 71 per cent of India’s chief executive officers (CEOs) are very confident of their company’s growth in the next 12 months, against a global average of 38 per cent. Globally, 29 per cent of CEOs, on an average, expect economic growth to improve over the next 12 months. However, 42 per cent of India’s CEOs are optimistic of improvement in the global economy. 

According to an annual survey of 1,379 CEOs across 79 countries carried out by PwC — the findings of which were released at the World Economic Forum in Davos — an impressive 67 per cent of India’s CEOs (against 52 per cent globally) expect to increase headcount in the next 12 months, with just nine per cent (16 per cent globally) planning to cut their workforce. When asked to name the country’s most important for their organisation’s overall growth prospects in the next 12 months, Indian CEOs cited the US (55 per cent), followed by China (30 per cent), the UK (22 per cent) and Germany (16 per cent). Mumbai, New York and London were identified as the most important cities by Indian CEOs for their organisation’s growth.

“Confidence in the Indian economy is reflected in the optimism of Indian CEOs in their company’s growth. It reinstates India’s growth story, backed by the government’s reforms agenda,” noted Shyamal Mukherjee, chairman, PwC India. The survey found that CEOs worldwide feel globalisation has done little to solve income inequality — 44 per cent said globalisation has not helped close the gap between the rich and the poor. Worries about protectionism were on the rise, with 59 per cent of CEOs concerned about the issue. This increased to 64 per cent for CEOs in the US and Mexico. Around 58 per cent of business leaders think it has become harder to balance globalisation with rising trends in protectionism. Economic uncertainty (82 per cent), over-regulation (80 per cent) and availability of key skills (77 per cent) were among the top concerns of CEOs worldwide.

 

 

“Despite a tumultuous 2016, CEO confidence is moving back up — albeit slowly, and still a long way from the levels we saw back in 2007 (52 per cent),” noted Bob Moritz, global chairman, PwC. The survey said that the top three concerns in the mind of CEOs worldwide were creating a people and technology strategy fit for the digital age, preserving trust in their businesses in a world of increasingly virtual interactions and making globalisation work for everyone by engaging ever more with society and collaborating to find solutions. All topics will be high up on the Davos agenda, Moritz said.