Top Priority Of Indian CEOs Cost Cutting
Indian CEOs place a high premium on lowering costs.
Despite being more optimistic than their worldwide counterparts about their nation's economic prospects, the great majority of Indian CEOs reported in a study that companies are cutting or plan to cut operational expenses in response to mounting geopolitical threats.
However, the majority of businesses do not intend to reduce their staff or pay, according to the annual Global CEO Survey, which was issued here on Monday during the opening day of the World Economic Forum gathering.
According to the poll, over 40% of CEOs worldwide and 41% of Indian respondents do not anticipate their firms to be commercially sustainable in 10 years if they continue on their current course.
In addition, roughly 73% of CEOs worldwide, 69% of CEOs in Asia Pacific, and 78% of CEOs in India predict that the rate of global economic growth would slow down during the next 12 months. However, the study also revealed that, despite the bleak forecast for the world economy, India's CEOs are optimistic about the country's economic development. Over half (57%) of CEOs are optimistic about the Indian economy in the coming year.
Comparatively, just 37% of CEOs in the Asia-Pacific and 29% of CEOs globally anticipate improved economic growth in their respective nations or regions during the next 12 months.
According to PwC, CEOs are now include interruptions in their plans as a result of geopolitical flashpoints.
When asked what, if any, steps their business is planning for the upcoming year due to the war in Europe, 67 percent of Indian CEOs responded that they are altering supply chains.
In addition, 59% of respondents said they are diversifying their product and service offerings; 50% said they are boosting their efforts in data privacy and cyber security; and 48% discussed changing their presence in their present markets and/or entering new ones. According to the study report, "93% of India's CEOs (as opposed to 85%) and 81%) CEOs in the Asia Pacific region said that they are decreasing or preparing to decrease operational expenses in reaction to the present situation."
Between October and November 2022, a survey of 4,410 CEOs from 105 nations and territories—including 68 CEOs from India—was undertaken.
Inflation, macroeconomic volatility, climate change, and geopolitical war were among the top dangers cited by Indian CEOs for the upcoming year. In India, around 60% of businesses claimed to be developing novel, environmentally friendly goods or procedures at the moment.
Around 93 percent of Indian CEOs reported that they are reducing, have reduced, or are contemplating reducing operational expenses and fostering revenue growth to combat economic difficulties and instability. Cost savings are high on everyone's priority list.
However, almost 85% of respondents emphasised that they will not cut the number of their employees, and 96% said they do not intend to lower wages, highlighting their commitment.
However, almost 85% of respondents emphasised that they will not cut the size of their employees, and 96% said they will not lower salary, proving their determination to keep talent.
The outlook for India's economic development has been generally good, despite signs of a worldwide economic downturn, persistently high prices, and global effects of the conflict in Europe.
The World Bank predicts that despite India's GDP maybe increasing less in 2022–2023 than it did in 2021–2022 due to its strong domestic demand, it would still be one of the world's fastest–growing major economies.
In addition, the World Bank raised its estimate of India's 2022–23 GDP growth rate to 6.9 percent from 6.5 percent (in October 2022), while the Reserve Bank of India slightly lowered its forecast for the current fiscal year to 6.8 percent in its most recent report, attributing the change to a slowdown in the global economy.