Indian CEOs are riding a wave of renewed optimism about the global economy, with confidence soaring to 80% for the next three years, up from 69% last year, the results of a KPMG survey showed. The surge signals a bold embrace of long-term growth potential, even as the leaders remain acutely aware of the hurdles ahead.

Yet, this optimism paints a complex picture. While the broader economic landscape shines brighter, the outlook for their own companies has dimmed slightly. Confidence in personal growth prospects slipped to 68%, reflecting a cautious approach amidst “lingering uncertainties stemming from geopolitical complexities, economic instability, and rapid technological advancements.”

The duality of this sentiment is striking. On one hand, the KPMG 2024 CEO Outlook reveals that “the confidence of CEOs in India and globally in growth prospects for the country remains unchanged in 2024 from 2023 levels.” On the other hand, a significant number of CEOs are grappling with emerging internal challenges, particularly the operational difficulties brought on by disruptive technologies.

“The evolving risk landscape has also shifted the perception of CEOs,” the report notes, highlighting that 16% of Indian CEOs now view operational issues as the greatest threat to growth—an increase from 10% in 2023. Coupled with reputational risks and cybersecurity threats, these concerns indicate that navigating the internal landscape is just as critical as addressing external economic pressures.

A telling statistic shows that “70 or higher per cent of CEOs in India believe that factors such as the cost of living, trade regulations, cybercrime and cyber insecurity, and talent shortages would negatively impact their organisation’s prosperity over the next three years.” With 50% of CEOs citing the race to integrate generative AI as their top challenge, the message is clear: technological adaptation is no longer optional but essential for survival.

Despite these concerns, the appetite for growth through Mergers and Acquisitions (M&As) remains robust. The report reveals that “22% of CEOs in India identified M&A strategies as the most crucial element for achieving their organisations’ growth objectives.” With 46% showing a high appetite for M&A, Indian executives are strategically positioning themselves to leverage opportunities, albeit with a hint of caution compared to last year’s figures.

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