PwC's Sanjeev Krishan on what's on the minds of Indian CEOs

Q: Let's begin with the key finding. According to your survey, 94% of India CEOs, as against 88% last year, feel that global growth rates are poised to increase, while 99% of India CEOs believe India’s economic growth will improve over the next 12 months. What, in your opinion, would drive this growth given the current uncertainty?
Ans:

• Continued support from govt has been key for the positive sentiments
• Benign interest rate policies also adding to confidence
• Consumption numbers have also kept pace with economic recovery
• With improved capacity utilisation, revival of capital cycle expected
• India CEOs optimistic because of how the country has weathered the Covid challenge  

Q: 89% of India CEOs are concerned about health risks. With that in mind, how will the new Omicron-led waves in India and other countries of the world impact the economic recovery that had started, both at home and in the world at large?
Ans:

• Most India CEOs will look at Omicron as a short-term, transient challenge
• Economy was affected significantly by the second wave of Covid. There were supply-side challenges, labour issues etc
• Omicron will not impede prospects for 2022

Q: 77% of India CEOs are worried about geopolitical conflict. With that in mind, what are you hearing from CEOs on the current geo-political situation and what is its impact on business?
Ans:

• If interest rates starts going up in the West, pullback of capital from India could impact stock market and consumer sentiment and thereby consumption in India
• Economies of the world getting aligned under two broad blocks could create opportunities for India
• India is robust on the services side and will benefit if it can pick-up on the manufacturing side

As has become the common wisdom thanks to the experience of the past two years, whether or not CEOs across India are justified in their optimism will be decided by the severity of the ongoing Omicron-led wave and our success or failure in preventing another round of strict lockdowns and curfews.
 

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