Indian CEOs worry more now about health risks impacting top line: PwC study

While 99% Indian CEOs polled this year believed India's economic growth will improve in next 12 months, the survey conducted before third wave outbreak raises fresh questions about the outlook

About 89 per cent of India’s chief executive officers (CEOs) are concerned about health risks adversely impacting their top line in the next 12 months. This is 9 percentage points higher than what their global counterparts think, according to a CEO survey conducted by audit firm PwC before the onset of the third wave.

“This is perhaps an indication that business leaders would like to exercise caution when it comes to making early investment and business decisions, despite vaccination drives worldwide. Concern over the ability to attract and retain talent is also strongly linked (61 per cent) in CEOs’ minds with health risks,” the PwC Annual Global CEO Survey said. The survey saw participation from 4,446 CEOs from 89 territories of which 77 are from India.

Last year, 70 per cent of Indian CEOs viewed the pandemic as a top threat to growth, while 62 per cent considered cyber threats as an impediment to growth.

About 99 per cent of Indian CEOs polled this year believe India’s economic growth will improve in the next 12 months. The survey, conducted before the outbreak of the third wave, raises fresh questions about the growth outlook.

Sanjeev Krishan, chairman at PwC India said Omicron has cast a shadow and CEOs are focused on the health and safety of their employees. He added, CEO confidence and optimism over the past one year is testimony to the resilience of Indian companies.

“The vigour with which most Indian business leaders took the challenges brought in by the pandemic head on, coupled with the will to emerge stronger in the face of adversity, has led to sustained growth for businesses in India. Perhaps, owing to the futuristic groundwork done during the difficult times, 97 per cent of India’s CEOs are confident about their own company’s prospects for revenue growth. This is not only for the near term but also over the next three years,” he added.

About 77 per cent of Indian CEOs think geopolitical conflict is the second biggest threat to their business after health risks. Other risks like cyber attacks (77 per cent), macro-economic volatility (75 per cent), climate change (62 per cent) and social inequality (45 per cent) are considered among the major threats impacting companies in the next 12 years.

“Adding to the continued challenge of the mutating Covid virus is the rising geopolitical conflict that has led to global disruptions in commerce. This is 11 per cent higher among Indian CEOs and a cause for greater concern. These developments had a direct impact on trade and commerce. They could well have jeopardised a company’s ability to operate in specific regions or caused potential business interruptions by damaging the operations of key business partners,” the survey said.

Among Indian companies that participated in the survey, 27 per cent already have a net-zero commitment (22 per cent globally) in place, while 40 per cent are in the process of developing and articulating their commitments (29 per cent globally). Only 30 per cent have neither made nor are in the process of making any net-zero commitment (globally 44 per cent).

“At the sector level, energy, utilities and resources are the most represented ones among those that have made net-zero commitments. This reinforces the fact that high-emitting (and hard-to-abate) industries are often front and centre when it comes to climate action, placing them in the complex but critical role of problem-contributor and problem-solver,” the survey said.