Indian CEOs Planning To Reduce Operating Costs: Reports

By Pragativadi News Service On Jan 17, 2023

Davos: Amid rising geopolitical risks, a vast majority of Indian CEOs have indicated in a survey that they are reducing or planning to reduce operating costs, even as they are more upbeat than their global peers on their country’s economic prospects.

However, most of the companies do not plan to cut their headcount or salaries, found the annual Global CEO Survey released by consultancy giant PwC here on the first day of the World Economic Forum meeting.

The survey also found that about four in ten CEOs (40 per cent of global and 41 per cent of India respondents) do not expect their companies to be economically viable in 10 years if they continue on their current path.

Also, about 78 per cent of India CEOs, 73 per cent of global CEOs and 69 per cent of Asia Pacific CEOs believe that global economic growth will decline over the next 12 months. But the survey also indicated that despite the gloomy global outlook, India CEOs are hopeful about the country’s economic growth. More than five in ten CEOs (57 per cent) express optimism about India’s economy over the next 12 months.

In comparison, only 37 per cent of Asia Pacific CEOs and 29 per cent of global CEOs expect economic growth to improve in their countries or regions over the next 12 months.

PwC further said geopolitical flash points have prompted CEOs to factor in disruptions in their scheme of things. Responding to a question on what actions, if any, their company is considering for the next 12 months because of the conflict in Europe, 67 per cent of India CEOs said they are adjusting supply chains.

Besides, 59 per cent highlighted they are diversifying products and services; 50 per cent emphasised they are increasing investments in cyber security and data privacy, and 48 per cent talked about adjusting their presence in current markets and/or expanding into new markets.

“In response to the current environment, 93 per cent of India CEOs (as against 85 per cent of global CEOs and 81 per cent of Asia Pacific CEOs) say that they are reducing or planning to reduce operating costs,” the survey report said.