India's economy set to improve over next 12 months

India's economic growth is all set to improve over the next 12 months despite the coronavirus pandemic-related problems and global headwinds, says the PwC Annual Global CEO Survey.

The findings are based on a survey by the global consultancy that covered 4,446 CEOs in 89 countries and territories, including 77 from India, in October and November of 2021.

Despite a variety of headwinds, most notably those related to the ongoing pandemic, CEOs in India are significantly optimistic about the prospects for a stronger economy in the coming year, as per the survey released on Monday.

"Ninrty-nine per cent of CEOs in India believe India's economic growth will improve over the next 12 months, with 94 per cent of India CEOs being optimistic about global economic growth improving over the next 12 months as against 77 per cent of global CEOs," it said.

When it comes to the revenue prospects of their own companies, 98 per cent of CEOs are confident about growth during the same time period.

While for the most part, CEOs globally are at least as optimistic as they were last year about the prospects for economic growth in 2022, the optimism of India CEOs, up from 88 per cent last year, stands out at 94 per cent.

Sanjeev Krishan, chairman of PwC in India, said that while Omicron has cast a shadow and CEOs are focused on the health and safety of their employees at the moment, their confidence and optimism over the past one year is a 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, he said.

"Perhaps owing to the futuristic groundwork done during the difficult times, 97 per cent of India CEOs are confident about their own company's prospects for revenue growth not only in the near term but also over the next three years," he said.

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

This year, 15 per cent of CEOs in India are apprehensive about cyber risks hindering their company's ability to raise capital.

"India CEOs also agree that cyber risks could cause severe revenue disruptions, with 64 per cent of respondents fearing a breach could hinder sales of products or services.

"Besides business disruptions, 47 per cent of chief executives believe cyber threats could impede their ability to develop products and services," the survey said.

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