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    KPMG 2024 India CEO Outlook

    More than 1,300 global CEOs share their views on geopolitics, return-to-office, ESG and generative AI.
    event 17 Sep, 2024
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    Leveraging AI to steer global challenges

    In today’s rapidly evolving landscape, rapid technological advancements in the form of generative AI and geopolitical uncertainties continue to shape our reality and amongst these challenges, India faces a critical mandate to drive innovation and secure sustainable growth.

    The confidence of CEOs in India in terms of growth prospects for the global economy over the next three years has considerably increased to 80 per cent in 2024 from 69 per cent in 2023. This substantial increase highlights a renewed optimism and determination in navigating long-term growth trajectories, with a majority of them, committed to creating a solid foundation by betting big on AI and bolstering their workforce to adapt to evolving business needs.

    From the race to embrace artificial intelligence (AI) to geopolitical uncertainties, the challenges faced by the CEOs in India over the last few years, are vast and complex. Alongside these external pressures, internal challenges such as upskilling of the workforce and hybrid working are pushing CEOs in India to be agile and flexible in their stakeholder management, while also keeping an eye on medium-term growth. What is very encouraging is, leaders in India are extremely committed to invest in future. Working around the above-mentioned challenges, calls for CEOs in India to be more resilient, nimble and innovative than ever before. As we look ahead, CEOs in India who are confident and adapt to the rapidly changing world and invest in the right technologies and talent are poised to deliver sustainable, long-term growth.

    Yezdi Nagporewalla

    Chief Executive Officer

    KPMG in India

    Yezdi Nagporewalla

    KPMG 2024 India CEO Outlook

    125 CEOs in India share their views on geopolitics, return-to-office, ESG and generative AI

    Download the report (1.36MB)
    Exploring India's dynamic Start-up Ecosystem
    Ecomic Outlook

    Navigating growth opportunities in a dynamic business environment

    The KPMG 2024 CEO Outlook surveyed CEOs globally and in India on their three-year outlook on the business and economic landscapes. The confidence of CEOs in India in terms of growth prospects for the global economy over the next three years has considerably increased to 80 per cent in 2024 from 69 per cent in 2023. This substantial increase highlights a renewed optimism and determination in navigating long-term growth trajectories. Conversely, the level of confidence of CEOs in India in their own company’s growth prospects has declined to 68 per cent from 71 per cent in 2023, mirroring a slight decline of 76 per cent observed, when it comes to CEOs globally in comparison to 77 per cent in 2023. This indicates while overall economic recovery continues, executives remain cautious due to lingering uncertainties stemming from geopolitical complexities, economic instability, and rapid technological advancements.

    The confidence of CEOs in India and globally in growth prospects for the country remains unchanged in 2024 from 2023 levels. This stability supports business confidence of CEOs in India and globally to pursue both organic and inorganic growth opportunities.

    Confidence levels in growth prospects

    ceo outlook economic chart 1

    Evolving risks landscape over the next three years

    While external threats like geopolitical tensions and political instability have receded, CEOs now face a new set of internal challenges, including operational difficulties with the constant emergence of new and disruptive technologies. The evolving risk landscape has also shifted the perception of CEOs, with 16 per cent CEOs in India (in comparison to 10 per cent of CEOs in India in 2023) and 14 per cent CEOs globally considering operational issues as the greatest threat to their organisations' growth. Furthermore, reputational risk, including misalignment with customer and public sentiment, has emerged as one of the top three threats for CEOs in India, alongside cybersecurity, emerging/disruptive technologies, and environmental/climate change. 70 or higher percent 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.

    Top threats to organisation’s growth for CEOs in India

    ceo outlook economic chart 2
    Technology
    Ten years back, AI technologies were not something any one was talking about. Cut to today, it’s something that has become critical for business leaders, seemingly eager to explore all the possibilities that the technology brings with it. Gen AI, presents more opportunities for businesses to increase efficiency, productivity and strengthen one’s competitive position, by making use of all of its responsible aspects i.e.- transparency, accountability, accuracy and explainability. While the tool in itself has the potential to rapidly evolve and self-learn, the need for humans to remain central to AI advancements, will hold the crux. An ethical approach in using the tool, by safeguarding against all the vulnerabilities will extremely imperative.

    Akhilesh Tuteja

    Partner and Head, Clients and Markets

    KPMG in India

    Yezdi Nagporewalla

    Improving productivity and efficiency considered the top benefit of generative AI

    There is growing commitment towards generative AI among CEOs in India as well as globally, with majority of them expressing their intention to invest in the technology to drive the change.

    CEOs in India believe that generative AI will increasingly be utilised to drive productivity gains and value creation across the workforce, with 18 percent CEOs in India compared to 16 per cent CEOs globally agreeing with the statement.

    Additional key benefits that CEOs in India view as major advantage of implementing generative AI technologies include, new product and market growth opportunities (12 per cent), fraud detection and cyber-attack response (12 per cent), increased profitability (12 per cent), increased innovation (11 per cent), and upskilling the workforce for future readiness (11 per cent).

    CEOs in India confident about the benefits of generative AI, but concerned about pace of progress on regulations

    71 per cent CEOs in India compared to 76 per cent CEOs globally report having a solid understanding of the ways in which generative AI can enhance their organisations' performance and secure a competitive edge. At the same time, they are also apprehensive about the pace of progress on generative AI regulations, with 77 percent of CEOs in India as opposed to 69 per cent globally agreeing with this sentiment.

    Comparison of CEOs in India and globally on their plans to invest in generative AI

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    Comparison of CEOs in India and globally on time taken to see a return on investment in implementation of generative AI

    ceo outlook economic chart 2

    Ethical implementation is perceived as a significant challenge

    CEOs in India find are finding themselves at crossroads, grappling with the challenge of deploying AI to drive growth and shareholder return, while ensuring that the ethical human impact of the technology is not compromised. Therefore, ethical challenges are a major concern, with 64 percent CEOs in India compared to 61 percent CEOs globally tagging it as a significant obstacle to adopting generative AI in their organisations'.

    CEOs in India neutral about their preparedness to deploy generative AI

    CEOs exhibit a neutral stance regarding their readiness to implement generative AI, especially when it comes to data security. 56 percent CEOs in India compared to 58 percent of global CEOs cited that they neither agree or disagree that they are confident of being data ready to deploy generative AI safely and efficiently.

    Half of the surveyed CEOs in India and around 56 percent of the CEOs globally neither agree nor disagree that their employees possess the right skills to fully leverage the benefits of generative AI, while 86 percent CEOs in India compared to 76 percent of the CEOs globally believe that generative AI will not impact the number of jobs, but will require upskilling and existing resources to be redeployed.

    Moreover, 66 percent CEOs in India compared to 58 percent CEOs globally concur that the integration of generative AI has necessitated a reassessment of the skills required for entry-level roles.

    Comparison of CEOs in India and globally anticipating the impact of generative AI

    ceo-outlook-technology_chart3revised

    Safeguarding and keeping pace with the rapid AI advancements

    CEOs in India are increasing investment in cybersecurity to protect their organisations' from potential threats posed by AI. Around 58 percent of the CEOs in India compared to 55 percent CEOs globally expressed confidence that their company's cybersecurity measures are capable of keeping pace with the rapid AI advancements. However, around 49 per cent CEOs in India compared to 59 percent of CEOs globally were uncertain about their organisations' capacity to secure suitable cybersecurity talent and solutions to defend against AI threats.

    Technology is an integral part of any business today, that in many cases even for product organisations such as ours, technology is critical in the way we operate. Earlier it was automation, then we moved to digital and now we have got a wave of intelligence which is only getting stronger. When you look at the short-term impact of technology, I think we are still going to have organisation laggards that are going to want to make investments in the areas of digital where people, process and technology, come together on a single platform. That being said, organisations are going to look at gen AI, as a means to transform. In two-four years, gen AI will become mainstream because of its ability to assist on large business or strategic decisions, especially in the areas of operational decision making when it comes to either transactional data or to manufacturing data interspersed with numerical analysis, we’ll see some transformative steps especially in the world of automated manufacturing. Companies should experiment and choose their technology partners well, somebody who is willing to invest in their business, somebody who is at the vanguard of new technology, but has also got the ability and tenacity to go the distance.

    Manish Choksi

    Non-Executive Vice Chairman,

    Asian Paints

    Manish-choksi-asian-paints
    Talent__pillarimage
    The survey has indicated that a significant portion of the CEOs in India envision a future predominantly characterised by in-office work environment. As the trend of employees reassessing their work preferences in the post-COVID-19 era gains momentum, it becomes imperative for businesses to gain a comprehensive understanding of the talent landscape in India. By leveraging information like availability of talent, quality of life for employees, and other such metrics, businesses can strategically position themselves, and attract top talent by ensuring their needs are fulfilled. The power to shape the future of talent, lies in staying informed and adapting proactively.

    Sunit Sinha

    Partner and Head- Human Capital Advisory Solutions, Business Consulting

    KPMG in India

    Manish-choksi-asian-paints

    The return to office discourse

    In the face of shifting workforce dynamics and challenges posed by both internal and external factors, growth-focused business leaders are recalibrating their social contracts to meet the changing expectations of current and future talent, while keeping long-term organisational growth in mind. According to the KPMG 2024 CEO Outlook survey, CEOs in India are taking a firm stance on returning to pre-pandemic, in-office work models. 78 per cent CEOs in India, compared to 83 per cent CEOs globally, envision a return to an in-office working environment for their employees within the next three years.

    To facilitate this, 91 per cent of CEOs in India compared to 87 per cent CEOs globally are prepared to reward employees who consistently come into the office with promotions, raises, and more favorable assignments. In 2024, 22 per cent of CEOs in India, compared to 20 per cent in 2023, have emphasized that enhancing the employee value proposition to attract and retain top talent will be their primary operational priority for achieving long-term growth objectives.

    This trend underscores the commitment of CEOs in India and around the world to support a smooth transition back to traditional work models, ensuring seamless integration for their employees while aligning with their growth strategies.

    Comparison on the working environment for corporate employees in the next three years basis views shared by CEOs in India

    The return to office discourse

    Impact of generative AI on skill development

    59 per cent of the CEOs globally are focusing on investing in new technologies and only 41 per cent are placing more capital investment in developing their workforce's skills and capabilities to drive growth and transformation within their organisations’. On the contrary, CEOs in India are equally emphasising on the importance of developing workforce skills and capabilities alongside technological investments.

    The KPMG 2024 CEO Outlook survey indicates that 83 per cent CEOs in India perceive labor market shifts, particularly an aging workforce, as having a moderate impact on their organisations' employee recruitment, retention, and overall culture. Conversely, only 64 per cent of CEOs globally share this view, with 13 per cent believing the impact will be minimal.

    We view generative AI as a strategic enabler that complements human talent, rather than a disruptor. The fact that 86% of Indian CEOs see AI as a redeployment opportunity resonates with our approach—we are actively integrating AI to enhance customer experience, streamline operations, and improve decision-making. However, the true competitive edge comes from pairing AI with a highly skilled workforce. By focusing on ethical AI integration and upskilling, we are ensuring that technology amplifies human potential, helping us maintain agility and leadership in the rapidly evolving banking industry.

    Prashant Kumar

    MD and CEO

    Yes Bank

    Manish-choksi-asian-paints
    ESG__pillarimage
    The survey findings reveal that the CEOs increasingly recognize ESG for what it is - an integral part of their operations and corporate strategies, for building productive sustainable businesses. Quantifying ESG performance and progress towards the targets through pertinent ESG disclosures are critical at a time, when both stakeholders and regulators expect relevant and accurate data, at par with financial disclosures. CEOs surveyed cited that articulating a convincing ESG story to stakeholders remains a challenge, but the good news is they are committed to working towards becoming sustainable and are making concerted efforts to remain resilient and agile.

    Namrata Rana

    National Head of ESG

    KPMG in India

    Namrata Rana Quote

    Impact of ESG on corporate strategy

    CEOs have started considering ESG as an integral part of their corporate strategy, particularly in the context of enhancing customer relationships and bolstering brand reputation. 30 percent of CEOs in India compared to 34 percent globally have cited building customer relationships and positive brand association as the top area where ESG would have the most impact, followed by shaping capital allocation, partnerships, alliances and M&A strategy, and attracting next generation of talent.

    Further, it is evident that leaders are prepared to undertake measures in response to ESG concerns. A significant majority, 66 percent of CEOs in India compared to 76 percent CEOs globally, have indicated they would be willing to divest a profitable part of the business that was damaging their reputation.

    CEOs in India take a neutral stance when it comes to ESG progress

    More than half of the CEOs in India (54 per cent) compared to CEOs globally (60 per cent) agree that there is strong public expectation on businesses to address societal challenges, including inclusion, diversity, equity, social justice and climate change.

    However, there remains a degree of uncertainty among CEOs regarding their ability to achieve their Net Zero objectives by 2030. A mere 36 percent of CEOs in India compared to 51 percent of CEOs globally concur that they possess the confidence to meet these goals.

    CEOs in India ( 56 per cent) as well as globally (55 per cent) perceive that their stakeholders' expectations with regard to ESG change faster than they are able to adapt their strategy, which is a major obstacle in achieving their ESG objectives.

    Six areas where ESG strategy would have the greatest impact over the next three years in India as well as globally.

    CEO outllook ESG chart

    Leadership altering the way they communicate ESG strategies

    There is a noticeable increase in the politicisation and polarisation of critical issues, including social mobility and climate change, which is presenting significant challenges for CEOs in India as well as globally who are already facing the pressure to meet or re-evaluate their established targets. As a result, CEOs both India and global are altering their approach to communicating their efforts on ESG initiatives, with 75 per cent of CEOs in India compared to 69 per cent CEOs globally concurring with the statement. On the other hand, 19 per cent of the CEOs in India compared to 28 per cent of their global counterparts have agreed that they have evolved their ESG strategies in the past 12 months to meet the changing needs of the stakeholders.

    CEO outllook ESG chart2
    As a CEO, the most critical question is: how deeply embedded are ESG principles within your company’s strategy? At Welspun Living Limited, we have set clear milestones through 2030, and we hold ourselves accountable for every step. In today’s volatile world—whether it’s geopolitical uncertainty or a potential crisis like COVID-19—preparedness is key. The focus must always be on your ESG goals and the milestones you've set. This is not just about the CEO’s commitment; it’s about holding your teams accountable and ensuring your organization makes a meaningful impact—on your consumers, the planet, communities, and the broader ecosystem. Ultimately, leading from the front means driving progress towards these goals with unwavering focus.

    Dipali Goenka

    CEO and Managing Director

    Welspun Living Limited

    Dilip Goenka Quote

    Exploring opportunities for growth

    Technology and generative AI

     

    • Investment in new technologies and market expansion CEOs in India are increasingly committing to generative AI to enhance productivity and value creation. This technology is viewed as a key driver for new product development and market growth. By prioritising generative AI investments, organisations' can explore untapped markets, paving the way for sustained profitability
    • Developing a strong cybersecurity strategy Establishing a robust cybersecurity strategy is essential for protecting assets and maintaining client trust. Regular updates, risk assessments, and a clear incident response plan will help organisations' adapt to evolving threats and support long-term growth objectives.


       
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    Talent

    • Enhancing employee value proposition CEOs in India are committed to improving the employee value proposition to attract and retain top talent. By rewarding in-office work and fostering a supportive environment, organisations' can align employee satisfaction with long-term growth objectives, nurturing talent, ensuring well-being and thereby create a vibrant workplace culture.

    • Integrating generative AI for skill development CEOs in India recognise generative AI's potential to enhance workforce skills and readiness. By integrating AI into operations, organisations' can facilitate upskilling and encourage diverse skills among employees. Emphasizing inclusivity in AI initiatives will empower all employees, regardless of their background or seniority, to contribute meaningfully, ultimately driving transformation and growth within the organisation.

    Talent

    ESG

    • Integrating ESG into corporate strategy: Leaders are recognising ESG as essential for enhancing customer relations and brand reputation. By prioritising ESG initiatives, organisations' can strengthen stakeholder connections and attract top talent, positioning ESG as a catalyst for growth

    • Long-term investment in ESG for sustainable returns: Business leaders are embracing a long-term view on ESG investments, with many expecting significant returns within five to ten years. Focusing on diversity, inclusion, and climate action allows organisations' to meet stakeholder expectations while securing a competitive edge in the marketplace.




       

    ESG

    Methodology

    About the KPMG 2024 CEO Outlook

    The tenth edition of KPMG CEO Outlook, conducted with 1,325 CEOs of which 125 were from India, between 25 July and 29 August 2024, provides unique insights into the mindset, strategies, and planning tactics of CEOs.

    All respondents have annual revenues of over USD500 million and one third of the companies surveyed have more than USD10 billion in annual revenue. The survey included leaders from eleven markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, UK, and US) and eleven key industry sectors (asset management, automotive, banking, consumer and retail, energy, infrastructure, insurance, life sciences, manufacturing, technology, and telecommunications).

    NOTE: some figures may not add up to one hundred per cent due to rounding.